Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 14, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-34776 | |
Entity Registrant Name | Oasis Petroleum Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0554627 | |
Entity Address, Address Line One | 1001 Fannin Street | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 281 | |
Local Phone Number | 404-9500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | OAS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 324,040,513 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001486159 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 134,002 | $ 20,019 |
Accounts receivable, net | 220,654 | 371,181 |
Inventory | 33,000 | 35,259 |
Prepaid expenses | 8,404 | 10,011 |
Derivative instruments | 258,290 | 535 |
Other current assets | 270 | 346 |
Total current assets | 654,620 | 437,351 |
Property, plant and equipment | ||
Oil and gas properties (successful efforts method) | 9,321,389 | 9,463,038 |
Other property and equipment | 1,383,856 | 1,279,653 |
Less: accumulated depreciation, depletion, amortization and impairment | (8,556,566) | (3,764,915) |
Total property, plant and equipment, net | 2,148,679 | 6,977,776 |
Assets held for sale, net | 5,109 | 21,628 |
Derivative instruments | 3,371 | 639 |
Long-term inventory | 14,053 | 13,924 |
Operating right-of-use assets | 16,023 | 18,497 |
Other assets | 27,980 | 29,438 |
Total assets | 2,869,835 | 7,499,253 |
Current liabilities | ||
Accounts payable | 14,902 | 17,948 |
Revenues and production taxes payable | 153,011 | 233,090 |
Accrued liabilities | 244,131 | 281,079 |
Accrued interest payable | 75,652 | 37,388 |
Derivative instruments | 0 | 19,695 |
Advances from joint interest partners | 4,941 | 4,598 |
Current operating lease liabilities | 4,301 | 6,182 |
Other current liabilities | 1,736 | 2,903 |
Total current liabilities | 498,674 | 602,883 |
Long-term debt | 2,777,932 | 2,711,573 |
Deferred income taxes | 12,680 | 267,357 |
Asset retirement obligations | 57,339 | 56,305 |
Derivative instruments | 0 | 120 |
Operating lease liabilities | 17,169 | 17,915 |
Other liabilities | 5,213 | 6,019 |
Total liabilities | 3,369,007 | 3,662,172 |
Commitments and contingencies | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.01 par value: 900,000,000 shares authorized; 328,033,490 shares issued and 324,124,592 shares outstanding at March 31, 2020 and 324,198,057 shares issued and 321,231,319 shares outstanding at December 31, 2019 | 3,221 | 3,189 |
Treasury stock, at cost: 3,908,898 and 2,966,738 shares at March 31, 2020 and December 31, 2019, respectively | (36,189) | (33,881) |
Additional paid-in capital | 3,119,054 | 3,112,384 |
Retained earnings (accumulated deficit) | (3,756,825) | 554,446 |
Oasis share of stockholders’ equity (deficit) | (670,739) | 3,636,138 |
Non-controlling interests | 171,567 | 200,943 |
Total stockholders’ equity (deficit) | (499,172) | 3,837,081 |
Total liabilities and stockholders’ equity (deficit) | $ 2,869,835 | $ 7,499,253 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (in shares) | 328,033,490 | 324,198,057 |
Common stock, shares outstanding (in shares) | 324,124,592 | 321,231,319 |
Treasury stock, shares (in shares) | 3,908,898 | 2,966,738 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 387,798 | $ 575,732 |
Operating expenses | ||
Lease operating expenses | 49,769 | 58,444 |
Marketing, transportation and gathering expenses | 29,464 | 34,950 |
Production taxes | 19,326 | 29,618 |
Depreciation, depletion and amortization | 203,755 | 189,833 |
Exploration expenses | 1,168 | 830 |
Impairment | 4,823,678 | 629 |
General and administrative expenses | 31,174 | 34,459 |
Total operating expenses | 5,261,552 | 522,366 |
Gain (loss) on sale of properties | 11,226 | (2,922) |
Operating income (loss) | (4,862,528) | 50,444 |
Other income (expense) | ||
Net gain (loss) on derivative instruments | 285,322 | (117,611) |
Interest expense, net of capitalized interest | (95,757) | (44,468) |
Gain on extinguishment of debt | 83,887 | 0 |
Other income (expense) | 63 | (46) |
Total other income (expense), net | 273,515 | (162,125) |
Loss before income taxes | (4,589,013) | (111,681) |
Income tax benefit | 254,738 | 3,703 |
Net loss including non-controlling interests | (4,334,275) | (107,978) |
Less: Net income (loss) attributable to non-controlling interests | (23,414) | 6,904 |
Net loss attributable to Oasis | $ (4,310,861) | $ (114,882) |
Loss attributable to Oasis per share: | ||
Basic (in dollars per share) | $ (13.61) | $ (0.37) |
Diluted (in dollars per share) | $ (13.61) | $ (0.37) |
Weighted average shares outstanding: | ||
Basic (in shares) | 316,828 | 314,464 |
Diluted (in shares) | 316,828 | 314,464 |
Oil and gas revenues | ||
Revenues | ||
Total revenues | $ 239,128 | $ 368,782 |
Purchased oil and gas | ||
Revenues | ||
Total revenues | 86,278 | 148,471 |
Operating expenses | ||
Expenses | 85,203 | 149,904 |
Midstream services | ||
Revenues | ||
Total revenues | 56,411 | 48,021 |
Operating expenses | ||
Expenses | 13,084 | 16,729 |
Other services | ||
Revenues | ||
Total revenues | 5,981 | 10,458 |
Operating expenses | ||
Expenses | $ 4,931 | $ 6,970 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit)(Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Non-controlling Interests |
Balance (shares) at Dec. 31, 2018 | 318,377 | (2,092) | ||||
Balance at Dec. 31, 2018 | $ 3,918,880 | $ 3,157 | $ (29,025) | $ 3,077,755 | $ 682,689 | $ 184,304 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation (shares) | 4,360 | |||||
Equity-based compensation | 9,606 | $ 25 | 9,462 | 119 | ||
Distributions to non-controlling interest owners | (4,937) | (4,937) | ||||
Treasury stock - tax withholdings (shares) | (686) | (686) | ||||
Treasury stock - tax withholdings | (4,261) | $ (4,261) | ||||
Other | (175) | (134) | (41) | |||
Net income (loss) | (107,978) | (114,882) | 6,904 | |||
Balance (shares) at Mar. 31, 2019 | 322,051 | (2,778) | ||||
Balance at Mar. 31, 2019 | 3,811,135 | $ 3,182 | $ (33,286) | 3,087,083 | 567,807 | 186,349 |
Balance (shares) at Dec. 31, 2019 | 321,231 | (2,967) | ||||
Balance at Dec. 31, 2019 | 3,837,081 | $ 3,189 | $ (33,881) | 3,112,384 | 554,446 | 200,943 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation (shares) | 3,836 | |||||
Equity-based compensation | 7,105 | $ 32 | 7,007 | 66 | ||
Distributions to non-controlling interest owners | (6,028) | (6,028) | ||||
Equity component of senior unsecured convertible notes, net | (337) | (337) | ||||
Treasury stock - tax withholdings (shares) | (942) | (942) | ||||
Treasury stock - tax withholdings | (2,308) | $ (2,308) | ||||
Net income (loss) | (4,334,275) | (4,310,861) | (23,414) | |||
Balance (shares) at Mar. 31, 2020 | 324,125 | (3,909) | ||||
Balance at Mar. 31, 2020 | $ (499,172) | $ 3,221 | $ (36,189) | $ 3,119,054 | $ (3,756,825) | $ 171,567 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss including non-controlling interests | $ (4,334,275) | $ (107,978) |
Adjustments to reconcile net loss including non-controlling interests to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 203,755 | 189,833 |
Gain on extinguishment of debt | (83,887) | 0 |
(Gain) loss on sale of properties | (11,226) | 2,922 |
Impairment | 4,823,678 | 629 |
Deferred income taxes | (254,677) | (3,547) |
Derivative instruments | (285,322) | 117,611 |
Equity-based compensation expenses | 6,807 | 9,013 |
Deferred financing costs amortization and other | 6,188 | 6,930 |
Working capital and other changes: | ||
Change in accounts receivable, net | 149,819 | (71,083) |
Change in inventory | (4,300) | (3,184) |
Change in prepaid expenses | 635 | 1,505 |
Change in accounts payable, interest payable and accrued liabilities | (106,145) | 36,666 |
Change in other assets and liabilities, net | (3,275) | (4,391) |
Net cash provided by operating activities | 107,775 | 174,926 |
Cash flows from investing activities: | ||
Capital expenditures | (147,601) | (237,448) |
Proceeds from sale of properties | 11,813 | 0 |
Derivative settlements | 5,020 | 13,446 |
Net cash used in investing activities | (130,768) | (224,002) |
Cash flows from financing activities: | ||
Proceeds from Revolving Credit Facilities | 545,000 | 420,000 |
Principal payments on Revolving Credit Facilities | (331,000) | (368,000) |
Repurchase of senior unsecured notes | (68,040) | 0 |
Deferred financing costs | 0 | (43) |
Purchases of treasury stock | (2,308) | (4,261) |
Distributions to non-controlling interests | (6,028) | (4,937) |
Payments on finance lease liabilities | (648) | (256) |
Other | 0 | (175) |
Net cash provided by financing activities | 136,976 | 42,328 |
Increase (decrease) in cash and cash equivalents | 113,983 | (6,748) |
Cash and cash equivalents: | ||
Beginning of period | 20,019 | 22,190 |
End of period | 134,002 | 15,442 |
Supplemental non-cash transactions: | ||
Change in accrued capital expenditures | 25,333 | (23,686) |
Change in asset retirement obligations | $ 1,084 | $ 2,016 |
Organization and Operations of
Organization and Operations of the Company | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations of the Company | Organization and Operations of the CompanyOasis Petroleum Inc. (together with its consolidated subsidiaries, “Oasis” or the “Company”) is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. Oasis Petroleum North America LLC (“OPNA”) and Oasis Petroleum Permian LLC (“OP Permian”) conduct the Company’s exploration and production activities and own its crude oil and natural gas properties located in the Williston Basin and the Delaware Basin, respectively. In addition to its exploration and production segment, the Company also operates a midstream business segment through Oasis Midstream Partners LP (“OMP”) and Oasis Midstream Services LLC (“OMS”). OMP is a growth-oriented, fee-based master limited partnership that develops and operates a diversified portfolio of midstream assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the Condensed Consolidated Balance Sheet at December 31, 2019 is derived from audited financial statements. Certain reclassifications of prior year balances have been made to conform amounts to current year classifications. These reclassifications have no impact on net income. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of the Company’s financial position, have been included. Management has made certain estimates and assumptions that affect reported amounts in the unaudited condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. These interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report”). Consolidation. The accompanying unaudited condensed consolidated financial statements of the Company include the accounts of Oasis, the accounts of wholly-owned subsidiaries and the accounts of OMP and its general partner, OMP GP LLC (“OMP GP”). The Company has determined that the partners with equity at risk in OMP lack the authority, through voting rights or similar rights, to direct the activities that most significantly impact OMP’s economic performance. Therefore, as the limited partners of OMP do not have substantive kick-out or substantive participating rights over OMP GP, OMP is a variable interest entity. Through the Company’s ownership interest in OMP GP, the Company has the authority to direct the activities that most significantly affect economic performance and the right to receive benefits that could be potentially significant to OMP. Therefore, the Company is considered the primary beneficiary and consolidates OMP and records a non-controlling interest for the interest owned by the public. All intercompany balances and transactions have been eliminated upon consolidation. Risks and Uncertainties As a crude oil and natural gas producer, the Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for crude oil and natural gas, which are dependent upon numerous factors beyond its control such as economic, political and regulatory developments and competition from other energy sources. The energy markets have historically been very volatile, and there can be no assurance that crude oil and natural gas prices will not be subject to wide fluctuations in the future. If prices for crude oil, natural gas and natural gas liquids (“NGLs”) continue to decline or for an extended period of time remain at depressed levels, such commodity price environment could have a material adverse effect on the Company’s financial position, results of operations, cash flows, the quantities of crude oil and natural gas reserves that may be economically produced and the Company’s access to capital. The Company considered the impact of the novel coronavirus 2019 (“COVID-19”) pandemic on the assumptions and estimates used by management in the unaudited condensed consolidated financial statements for the reporting periods presented. As a result of the significant decline in current and expected future commodity prices, the Company recognized material asset impairment charges as of March 31, 2020 (see Note 8 — Property, Plant and Equipment). Management’s estimates and assumptions were based on historical data and consideration of future market conditions. Given the uncertainty inherent in any projection, which is heightened by the possibility of unforeseen additional impacts from the COVID-19 pandemic, actual results may differ from the estimates and assumptions used, and conditions may change, which could affect amounts reported in the unaudited condensed consolidated financial statements in the near term. Going Concern Based on the current commodity price environment, the Company currently expects it will be unable to comply with the leverage ratio covenant under its revolving credit facility (the “Oasis Credit Facility”), as amended in April 2020, beginning with the fourth quarter of 2020, which raises substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued. Failure to comply with this covenant, if not waived, would result in an event of default under the Oasis Credit Facility, the potential acceleration of outstanding debt thereunder and the potential liquidation of the collateral securing such debt. An acceleration under the Oasis Credit Facility could result in an event of default and an acceleration under the indentures for the Company’s senior unsecured notes and senior unsecured convertible notes (collectively, the “Notes”). The Company is actively pursuing, with support from its Board of Directors, a variety of transactions and cost-cutting measures, including but not limited to, reduction in corporate discretionary expenditures, refinancing transactions, capital exchange transactions, asset divestitures, reduction in capital expenditures in 2020 by approximately 50% to 60% from the initial total 2020 capital expenditure plan announced in February 2020 and operational efficiencies. Management believes these measures, as the Company continues to implement them, may enable it to comply with its leverage ratio covenant. However, the Company cannot predict the extent to which any of these measures will be successful, if at all. The Company’s unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not reflect any adjustments that might result if the Company is unable to continue as a going concern. As a result of the foregoing liquidity concerns and the Company’s reduction in planned capital expenditures in 2020 in response to the depressed commodity price environment, the Company’s estimated quantity of proved reserves has decreased significantly from the previous estimate disclosed in its 2019 Annual Report. This decrease is primarily due to the removal of proved undeveloped reserves in contemplation of the ongoing market downturn and uncertainty regarding the Company’s ability to finance the development of such reserves within five years. Dividends The Company has not paid any cash dividends since its inception. Covenants contained in the Oasis Credit Facility and the indentures governing the Company’s senior notes restrict the payment of cash dividends on its common stock. The Company currently intends to retain all earnings for the development of its business and for repayment of outstanding debt, and the Company does not anticipate declaring or paying any cash dividends to holders of its common stock. Significant Accounting Policies There have been no material changes to the Company’s critical accounting policies and estimates from those disclosed in the 2019 Annual Report, other than as noted below. Fair value measurement. In the first quarter of 2020, the Company adopted Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which improves the effectiveness of the disclosure requirements for fair value measurements. The adoption of ASU 2018-13 did not result in a material impact to the Company’s financial position, cash flows or results of operations. See Note 6 — Fair Value Measurements for disclosures in accordance with ASU 2018-03. Accounts receivable — credit losses. In the first quarter of 2020, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasts, to develop credit loss estimates. The Company’s exposure to credit losses is primarily related to its accounts receivable from crude oil and natural gas purchasers and joint interest owners on properties it operates. In accordance with ASU 2016-13, the Company estimates expected credit losses on its accounts receivable at each reporting date, which may result in earlier recognition of credit losses than under previous GAAP. These estimates are based on historical data, current and future economic and market conditions to determine expected collectability. Historically, the Company’s credit losses on joint interest and crude oil and natural gas sales receivables have been immaterial. The Company continually monitors the creditworthiness of its counterparties by reviewing credit ratings, financial statements and payment history. The adoption of ASU 2016-13 was applied using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings, and prior periods were not retrospectively adjusted. The adoption of ASU 2016-13 did not result in a material impact to the Company’s financial position, cash flows or results of operations (see Note 5 — Accounts Receivable). Recent Accounting Pronouncements Income taxes. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as separate entity financial statements and interim recognition of enactment of tax laws or rate changes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim reporting periods within those years. The Company is currently evaluating the effect of ASU 2019-12, but does not expect the adoption of this guidance to have a material impact on its financial position, cash flows or result of operations. Reference rate reform. In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by ASU 2020-04 and the impact the new standard will have on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Exploration and production revenues Revenues associated with contracts with customers for crude oil, natural gas and NGL sales and other services were as follows for the three months ended March 31, 2020 and 2019: Exploration and Production Revenues Three Months Ended March 31, 2020 2019 (In thousands) Crude oil revenues $ 212,793 $ 318,120 Purchased crude oil sales 85,757 147,136 Natural gas and NGL revenues 26,335 50,662 Purchased natural gas sales 521 1,335 Other services revenues (1) 5,981 10,458 Total exploration and production revenues $ 331,387 $ 527,711 __________________ (1) Represents revenues for equipment rentals and well services provided by the Company’s wholly-owned subsidiary, Oasis Well Services LLC (“OWS”), excluding intercompany revenues for services performed for the Company’s ownership interests, which are eliminated in consolidation and are therefore not included in consolidated exploration and production revenues. Prior period performance obligations. For sales of commodities, the Company records revenue in the month production is delivered to the purchaser. However, settlement statements and payments are typically not received for 20 to 60 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales once payment is received from the purchaser. Such differences have historically not been significant. The Company uses knowledge of its properties, its properties’ historical performance, spot market prices and other factors as the basis for these estimates. For the three months ended March 31, 2020 and 2019, revenue recognized related to performance obligations satisfied in prior reporting periods was not material. Midstream revenues Revenues associated with contracts with customers for midstream services under fee-based arrangements and midstream product sales from purchase arrangements were as follows for the three months ended March 31, 2020 and 2019: Midstream Revenues (1) Three Months Ended March 31, 2020 2019 (In thousands) Midstream service revenues Crude oil and natural gas revenues $ 26,921 $ 24,664 Produced and flowback water revenues 11,251 9,033 Total midstream service revenues $ 38,172 $ 33,697 Midstream product revenues Natural gas and NGL revenues $ 16,039 $ 12,797 Freshwater revenues 2,200 1,527 Total midstream product revenues $ 18,239 $ 14,324 Total midstream revenues $ 56,411 $ 48,021 __________________ (1) Represents midstream revenues, excluding intercompany revenues for work performed by the midstream business segment for the Company’s ownership interests, which are eliminated in consolidation and are therefore not included in consolidated midstream revenues. Prior period performance obligations. The Company records revenue for midstream services or product sales when the performance obligations under the terms of its customer contracts are satisfied. The Company measures the satisfaction of its performance obligations using the output method based upon the volume of crude oil, natural gas or water that flows through its systems. In certain cases, the Company is required to estimate these volumes during a reporting period and record any differences between the estimated volumes and actual volumes in the following reporting period. Such differences have historically not been significant. For the three months ended March 31, 2020 and 2019, revenue recognized related to performance obligations satisfied in prior reporting periods was not material. Contract balances Contract balances are the result of timing differences between revenue recognition, billings and cash collections. Contract liabilities are recorded for consideration received from customers primarily related to (i) temporary deficiency quantities under minimum volume commitments, which are recognized as revenue when the customer makes up the volumes or the deficiency makeup period expires and (ii) aid in construction payments received from customers which are recognized as revenue over the expected period of future benefit. The Company does not recognize contract assets or contract liabilities under its customer contracts for which invoicing occurs once the Company’s performance obligations have been satisfied and payment is unconditional. Contract liabilities are classified as current or long-term based on the timing of when the Company expects to recognize revenue. The following table reflects the changes in the Company’s contract liabilities for the three months ended March 31, 2020: (In thousands) Balance as of December 31, 2019 $ 2,105 Cash received — Revenues recognized (117) Balance as of March 31, 2020 $ 1,988 Remaining performance obligations The following table presents estimated revenue allocated to remaining performance obligations for contracted revenues that are unsatisfied (or partially satisfied) as of March 31, 2020: (In thousands) 2020 (excluding the three months ended March 31, 2020) $ 12,403 2021 18,580 2022 18,302 2023 12,628 2024 11,874 Thereafter 2,768 Total $ 76,555 The partially and wholly unsatisfied performance obligations presented in the table above are generally limited to customer contracts which have fixed pricing and fixed volume terms and conditions, which generally include customer contracts with minimum volume commitment payment obligations. The Company has elected practical expedients, pursuant to Accounting Standards Codification 606, Revenue from Contracts with Customers |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Crude oil inventory includes crude oil in tanks and linefill. Linefill that represents the minimum volume of product in a pipeline system that enables the system to operate is generally not available to be withdrawn from the pipeline system until the expiration of the transportation contract. Crude oil in tanks and linefill in third party pipelines that is expected to be withdrawn within one year is included in inventory on the Company’s Condensed Consolidated Balance Sheets, and crude oil linefill in third party pipelines that is not expected to be withdrawn within one year is included in long-term inventory on the Company’s Condensed Consolidated Balance Sheets. Equipment and materials consist primarily of well equipment, tanks and tubular goods to be used in the Company’s exploration and production activities and spare parts and equipment for the Company’s midstream assets. Equipment and materials are included in inventory on the Company’s Condensed Consolidated Balance Sheets. Inventory, including long-term inventory, is stated at the lower of cost and net realizable value with cost determined on an average cost method. The Company assesses the carrying value of inventory and uses estimates and judgment when making any adjustments necessary to reduce the carrying value to net realizable value. Among the uncertainties that impact the Company’s estimates are the applicable quality and location differentials to include in the Company’s net realizable value analysis as well as the liquidation timing of the inventory. Changes in assumptions made as to the timing of a sale can materially impact net realizable value. Due to lower expected future commodity prices, the Company recorded impairment losses for the Company’s crude oil inventory and long-term linefill inventory of $7.2 million and $1.3 million, respectively, to adjust the carrying values of the inventory to their estimated net realizable values during the three months ended March 31, 2020. The Company’s total inventory consists of the following: March 31, 2020 December 31, 2019 (In thousands) Inventory Crude oil inventory $ 7,057 $ 18,296 Equipment and materials 25,943 16,963 Total inventory $ 33,000 $ 35,259 Long-term inventory Linefill in third party pipelines $ 14,053 $ 13,924 Total long-term inventory $ 14,053 $ 13,924 Total $ 47,053 $ 49,183 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The following table sets forth the Company’s accounts receivable, net: March 31, 2020 December 31, 2019 (In thousands) Trade accounts $ 126,125 $ 276,629 Joint interest accounts 82,547 82,112 Other accounts 13,787 13,699 Total 222,459 372,440 Allowance for credit losses (1) (1,805) (1,259) Total accounts receivable, net $ 220,654 $ 371,181 __________________ (1) Upon adoption of ASU 2016-13, the Company recognized a cumulative-effect adjustment to retained earnings (accumulated deficit) of $0.4 million to increase its allowance for expected credit losses. Prior period amounts are not adjusted and continue to be reported in accordance with the previous guidance. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with the FASB’s authoritative guidance on fair value measurements, the Company’s financial assets and liabilities are measured at fair value on a recurring basis. The Company’s financial instruments, including certain cash and cash equivalents, accounts receivable, accounts payable and other payables, are carried at cost, which approximates their respective fair market values due to their short-term maturities. The Company recognizes its non-financial assets and liabilities, such as asset retirement obligations (“ARO”) and oil and gas and other properties, at fair value on a non-recurring basis. As defined in the authoritative guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). To estimate fair value, the Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The authoritative guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (“Level 1” measurements) and the lowest priority to unobservable inputs (“Level 3” measurements). The three levels of the fair value hierarchy are as follows: Level 1 — Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Pricing inputs, other than unadjusted quoted prices in active markets included in Level 1, are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 — Pricing inputs are generally less observable from objective sources, requiring internally developed valuation methodologies that result in management’s best estimate of fair value. Financial Assets and Liabilities Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following tables set forth by level, within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis: Fair value at March 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds $ 152 $ — $ — $ 152 Commodity derivative instruments (see Note 7) — 261,661 — 261,661 Total assets $ 152 $ 261,661 $ — $ 261,813 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds $ 146 $ — $ — $ 146 Commodity derivative instruments (see Note 7) — 1,174 — 1,174 Total assets $ 146 $ 1,174 $ — $ 1,320 Liabilities: Commodity derivative instruments (see Note 7) $ — $ 19,815 $ — $ 19,815 Total liabilities $ — $ 19,815 $ — $ 19,815 The Level 1 instruments presented in the tables above consist of money market funds included in cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019. The Company’s money market funds represent cash equivalents backed by the assets of high-quality major banks and financial institutions. The Company identifies the money market funds as Level 1 instruments because the money market funds have daily liquidity, quoted prices for the underlying investments can be obtained, and there are active markets for the underlying investments. The Level 2 instruments presented in the tables above consist of commodity derivative instruments, which include crude oil and natural gas swaps and collars. The fair values of the Company’s commodity derivative instruments are based upon a third-party preparer’s calculation using mark-to-market valuation reports provided by the Company’s counterparties for monthly settlement purposes to determine the valuation of its derivative instruments. The Company has the third-party preparer evaluate other readily available market prices for its derivative contracts, as there is an active market for these contracts. The third-party preparer performs its independent valuation using a moment matching method similar to Turnbull-Wakeman for Asian options. The significant inputs used are crude oil and natural gas prices, volatility, skew, discount rate and the contract terms of the derivative instruments. The Company does not have access to the specific proprietary valuation models or inputs used by its counterparties or third-party preparer. The Company compares the third-party preparer’s valuation to counterparty valuation statements, investigating any significant differences, and analyzes monthly valuation changes in relation to movements in crude oil and natural gas forward price curves. The determination of the fair value for derivative instruments also incorporates a credit adjustment for non-performance risk, as required by GAAP. The Company calculates the credit adjustment for derivatives in a net asset position using current credit default swap values for each counterparty. The credit adjustment for derivatives in a net liability position is based on the market credit spread of the Company or similarly rated public issuers. Based on these calculations, the Company recorded an adjustment to reduce the fair value of its net derivative asset by $0.7 million at March 31, 2020 and its net derivative liability by $0.5 million at December 31, 2019. Non-Financial Assets and Liabilities The fair value of the Company’s non-financial assets measured at fair value on a non-recurring basis is determined using valuation techniques that include Level 3 inputs. Asset retirement obligations. The Company records the fair value of its ARO liability in the period in which the liability is incurred. Fair value is determined by calculating the present value of estimated future cash flows related to the liability. Estimating the future ARO requires management to make estimates and judgments regarding the timing and existence of a liability, as well as what constitutes adequate restoration when considering current regulatory requirements. Inherent in the fair value calculation are numerous assumptions and judgments, including the ultimate costs, inflation factors, credit-adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. The fair value for ARO liabilities incurred during the three months ended March 31, 2020 was determined using an inflation factor of 2.5% and a credit-adjusted discount rate of 8.4% (see Note 11 — Asset Retirement Obligations). Oil and gas and other properties. The Company records its oil and gas and other properties at fair value when acquired in a business combination or upon impairment for proved oil and gas properties and other properties. Fair value is determined using a discounted cash flow model. The inputs used are subject to management’s judgment and expertise and include, but are not limited to, estimates of crude oil and natural gas proved reserves, future commodity pricing, future rates of production, estimates of operating and development costs, risk-adjusted discount rates and estimates of throughput volumes for the Company’s midstream assets. These inputs are classified as Level 3 inputs, except the underlying commodity price assumptions are based on NYMEX forward strip prices (Level 1) and adjusted for price differentials. At March 31, 2020, the underlying future commodity prices included in the Company’s estimated future cash flows of its proved oil and gas properties were determined using NYMEX forward strip prices for five years, escalating 2.5% per year thereafter. The estimated future cash flows also included a 2.5% inflation factor applied to the future operating and development costs after five years and every year thereafter. The estimated future cash flows for the Company’s proved oil and gas properties and midstream assets were discounted at market-based weighted average costs of capital of 12.7% and 10.4%, respectively (see Note 8 — Property, Plant and Equipment). |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company utilizes derivative financial instruments to manage risks related to changes in crude oil and natural gas prices. The Company’s crude oil contracts will settle monthly based on the average NYMEX West Texas Intermediate crude oil index price (“NYMEX WTI”), and its natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price (“NYMEX HH”). At March 31, 2020, the Company utilized fixed price swaps and two-way and three-way costless collars to reduce the volatility of crude oil prices on a significant portion of its future expected crude oil production. The Company’s fixed price swaps are comprised of a sold call and a purchased put established at the same price (both ceiling and floor), which the Company will receive for the volumes under contract. A two-way collar is a combination of options: a sold call and a purchased put. The purchased put establishes a minimum price (floor) and the sold call establishes a maximum price (ceiling) the Company will receive for the volumes under contract. A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be the index price plus the difference between the purchased put and the sold put strike price. The sold call establishes a maximum price (ceiling) the Company will receive for the volumes under contract. All derivative instruments are recorded on the Company’s Condensed Consolidated Balance Sheets as either assets or liabilities measured at their fair value (see Note 6 — Fair Value Measurements). The Company has not designated any derivative instruments as hedges for accounting purposes and does not enter into such instruments for speculative trading purposes. If a derivative does not qualify as a hedge or is not designated as a hedge, the changes in fair value are recognized in the other income (expense) section of the Company’s Condensed Consolidated Statements of Operations as a net gain or loss on derivative instruments. The Company’s cash flow is only impacted when the actual settlements under the derivative contracts result in making a payment to or receiving a payment from the counterparty. These cash settlements represent the cumulative gains and losses on the Company’s derivative instruments and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. Cash settlements are reflected as investing activities in the Company’s Condensed Consolidated Statements of Cash Flows. At March 31, 2020, the Company had the following outstanding commodity derivative instruments: Commodity Settlement Derivative Volumes Weighted Average Prices Fair Value Assets Fixed Price Swaps Sub-Floor Floor Ceiling (In thousands) Crude oil 2020 Fixed price swaps 4,733,000 Bbl $ 57.02 $ 134,306 Crude oil 2020 Two-way collar 2,322,000 Bbl $ 51.12 $ 59.79 50,178 Crude oil 2020 Three-way collar 4,859,000 Bbl $ 40.75 $ 53.16 $ 63.61 55,604 Crude oil 2021 Fixed price swaps 310,000 Bbl $ 56.01 6,661 Crude oil 2021 Two-way collar 248,000 Bbl $ 51.38 $ 59.33 4,274 Crude oil 2021 Three-way collar 1,313,000 Bbl $ 40.00 $ 50.79 $ 62.46 10,638 $ 261,661 The following table summarizes the location and amounts of gains and losses from the Company’s commodity derivative instruments recorded in the Company’s Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended March 31, Statements of Operations Location 2020 2019 (In thousands) Net gain (loss) on derivative instruments $ 285,322 $ (117,611) In accordance with the FASB’s authoritative guidance on disclosures about offsetting assets and liabilities, the Company is required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting agreement. The Company’s derivative instruments are presented as assets and liabilities on a net basis by counterparty, as all counterparty contracts provide for net settlement. No margin or collateral balances are deposited with counterparties, and as such, gross amounts are offset to determine the net amounts presented in the Company’s Condensed Consolidated Balance Sheets. The following table summarizes the location and fair value of all outstanding commodity derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets: March 31, 2020 Commodity Balance Sheet Location Gross Recognized Assets Gross Amount Offset Net Recognized Fair Value Assets (In thousands) Derivatives assets: Commodity contracts Derivative instruments — current assets $ 322,529 $ (64,239) $ 258,290 Commodity contracts Derivative instruments — non-current assets 7,186 (3,815) 3,371 Total derivatives assets $ 329,715 $ (68,054) $ 261,661 December 31, 2019 Commodity Balance Sheet Location Gross Recognized Assets/Liabilities Gross Amount Offset Net Recognized Fair Value Assets/Liabilities (In thousands) Derivatives assets: Commodity contracts Derivative instruments — current assets $ 633 $ (98) $ 535 Commodity contracts Derivative instruments — non-current assets 3,295 (2,656) 639 Total derivatives assets $ 3,928 $ (2,754) $ 1,174 Derivatives liabilities: Commodity contracts Derivative instruments — current liabilities $ 33,812 $ (14,117) $ 19,695 Commodity contracts Derivative instruments — non-current liabilities 686 (566) 120 Total derivatives liabilities $ 34,498 $ (14,683) $ 19,815 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following table sets forth the Company’s property, plant and equipment: March 31, 2020 December 31, 2019 (In thousands) Proved oil and gas properties (1) $ 8,954,843 $ 8,724,376 Less: Accumulated depreciation, depletion, amortization and impairment (8,193,662) (3,601,019) Proved oil and gas properties, net 761,181 5,123,357 Unproved oil and gas properties 366,546 738,662 Other property and equipment (2) 1,383,856 1,279,653 Less: Accumulated depreciation and impairment (362,904) (163,896) Other property and equipment, net 1,020,952 1,115,757 Total property, plant and equipment, net $ 2,148,679 $ 6,977,776 __________________ (1) Included in the Company’s proved oil and gas properties are estimates of future asset retirement costs of $42.1 million and $42.3 million at March 31, 2020 and December 31, 2019, respectively. (2) Included in the Company’s other property and equipment are estimates of future asset retirement costs of $1.4 million at both March 31, 2020 and December 31, 2019. Impairment The Company reviews its long-lived assets for impairment by asset group whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. Proved oil and gas properties. As a result of the significant decline in expected future commodity prices coupled with liquidity concerns due to the Company’s current expectation that it will be unable to comply with a covenant under the Oasis Credit Facility beginning with the fourth quarter of 2020, and the resulting decrease in estimated proved reserves, the Company reviewed its proved oil and gas properties in both the Williston Basin and the Delaware Basin for impairment. As of March 31, 2020, the Company recorded impairment charges of $4.4 billion, including $3.8 billion related to the Williston Basin and $637.3 million related to the Delaware Basin, to reduce the carrying values of its proved oil and gas properties to their estimated fair values (see Note 6 — Fair Value Measurements). For the three months ended March 31, 2019, the Company did not record impairment charges on its proved oil and gas properties. Unproved oil and gas properties. The Company assessed its unproved oil and gas properties for impairment and recorded impairment charges on its unproved oil and gas properties of $291.3 million and $0.6 million for the three months ended March 31, 2020 and 2019, respectively, as a result of leases expiring or expected to expire as well as drilling plan uncertainty on certain acreage of unproved properties. Other property and equipment. Due to the significant decline in expected future commodity prices, the Company and other crude oil and natural gas producers are changing their development plans, resulting in lower forecasted throughput volumes for |
Divestitures and Assets Held fo
Divestitures and Assets Held for Sale | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures and Assets Held for Sale | Divestitures and Assets Held for Sale Divestitures The Company reviews portfolio opportunities on an ongoing basis and has engaged in various divestiture transactions over recent years. In January 2020, the Company completed the initial closing for the sale of certain oil and gas properties located in the Williston Basin for total cash proceeds of $10.4 million. The transaction had an effective date of October 1, 2019, and the final closing statement for the transaction will be completed in July 2020. During the three months ended March 31, 2020, the Company recognized an $11.5 million net gain on sale of properties, which includes, and is subject to further, customary post-close adjustments, in its Condensed Consolidated Statements of Operations. The divested properties were in the Company’s exploration and production segment. Assets Held for Sale During the fourth quarter of 2019, the Company decided to pursue an exit from the well services business (the “Well Services Exit”) and began an active program to locate buyers for certain well services inventory and equipment included within the Company’s well services business segment. The assets expected to be sold related to the Well Services Exit met the criteria for assets held for sale at December 31, 2019 and were classified as such. During the three months ended March 31, 2020, the Company recorded an impairment loss of $14.5 million to write-off the net book value of certain well services equipment held for sale as of December 31, 2019 for which a sale is no longer probable to be completed within one year. In addition, the Company recorded an impairment loss of $1.4 million to adjust the carrying value of the remaining equipment held for sale to its estimated fair value less costs to sell. These impairment losses are included in impairment on the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2020. The fair value of the assets held for sale as of March 31, 2020 was determined using the expected sales price based on ongoing negotiations with a potential buyer. The Company considered all available information at the time the estimates were made; however, the fair value that will be ultimately realized upon the sale of these assets may differ from the estimated fair values reflected in the unaudited condensed consolidated financial statements. The expected sale of assets related to the Well Services Exit does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, and therefore, is not reported as discontinued operations. The following table presents balance sheet data related to the assets held for sale related to the Well Services Exit as of March 31, 2020: March 31, 2020 (In thousands) Inventory $ 2,434 Other property and equipment 15,786 Less: Accumulated depreciation and impairment (13,111) Total assets held for sale $ 5,109 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s long-term debt consists of the following: March 31, 2020 December 31, 2019 (In thousands) Oasis Credit Facility $ 522,000 $ 337,000 OMP Credit Facility 487,500 458,500 Senior unsecured notes 6.50% senior unsecured notes due November 1, 2021 43,601 71,835 6.875% senior unsecured notes due March 15, 2022 834,466 890,980 6.875% senior unsecured notes due January 15, 2023 307,728 351,953 6.25% senior unsecured notes due May 1, 2026 395,122 400,000 2.625% senior unsecured convertible notes due September 15, 2023 244,840 267,800 Total principal of senior unsecured notes 1,825,757 1,982,568 Less: unamortized deferred financing costs on senior unsecured notes (13,475) (15,618) Less: unamortized debt discount on senior unsecured convertible notes (43,850) (50,877) Total long-term debt $ 2,777,932 $ 2,711,573 Senior secured revolving line of credit . The Oasis Credit Facility is the Company’s senior secured revolving line of credit among OPNA, as borrower (the “Borrower”), Wells Fargo Bank, N.A., as administrative agent (the “Administrative Agent”) and the lenders party thereto with an overall senior secured line of credit of $3,000.0 million as of March 31, 2020. The Oasis Credit Facility has a maturity date of the earlier of (i) October 16, 2023, (ii) 90 days prior to the maturity date of the Company’s senior unsecured notes due in 2022 and 2023, of which $1,142.2 million is outstanding, to the extent such senior unsecured notes are not retired or refinanced to have a maturity date at least 90 days after October 16, 2023 and (iii) 90 days prior to the maturity date of the Company’s senior unsecured convertible notes due in 2023, of which $244.8 million is outstanding, to the extent such senior unsecured convertible notes are not retired, converted, redeemed or refinanced to have a maturity date at least 90 days after October 16, 2023. The Oasis Credit Facility is restricted to a borrowing base, which is reserve-based and subject to semi-annual redeterminations on April 1 and October 1 of each year. On April 24, 2020, the lenders under the Oasis Credit Facility completed their regular semi-annual redetermination of the borrowing base scheduled for April 1, 2020 and entered into that certain Limited Waiver and Fourth Amendment (the “Fourth Amendment”) to the Oasis Credit Facility. The Fourth Amendment amends the Oasis Credit Facility to decrease the borrowing base from $1,300.0 million to $625.0 million and to decrease the aggregate elected commitment from $1,100.0 million to $625.0 million. The following additional reductions will be effective on June 1, 2020 (the “June Reduction”) and July 1, 2020 (the “July Reduction”), respectively: (1) the June Reduction consists of borrowing base and aggregate elected commitment reductions from $625.0 million to $612.5 million and (2) the July Reduction consists of additional borrowing base and aggregate elected commitment reductions from $612.5 million to $600.0 million. In addition, the Fourth Amendment increases the letter of credit commitment under the Oasis Credit Facility from $50.0 million to $100.0 million. As of March 31, 2020, the Company had total elected commitments of $1,100.0 million, $522.0 million of borrowings at a weighted average interest rate of 2.7%, excluding the rate impact for the additional interest charges per the Fourth Amendment detailed below, and $18.9 million of outstanding letters of credit issued under the Oasis Credit Facility, resulting in an unused borrowing capacity of $559.1 million. The Fourth Amendment also includes a waiver and forbearance agreement with respect to a third-party surety indemnity obligation (the “Surety Bond”) obtained by a subsidiary of the Company in support of commitments for a transportation agreement. The Administrative Agent advised the Borrower on April 2, 2020 that the Surety Bond constituted additional Debt (as defined in the Oasis Credit Facility) not permitted under the Oasis Credit Facility and that the Borrower’s certifications had failed to reflect the existence of the Surety Bond in its borrowing requests. The Fourth Amendment contains a one-time waiver of these Defaults (as defined in the Oasis Credit Facility), other than with respect to approximately $29.3 million of additional interest charges as of March 31, 2020. The Fourth Amendment provided for forbearance of such additional interest until the earlier to occur of (i) October 24, 2020 and (ii) an Event of Default (as defined in the Oasis Credit Facility). The Administrative Agent and lenders are not obligated to grant any future forbearance. The Fourth Amendment amended the applicable margins and commitment fee rates with respect to Alternate Based Rate (“ABR”) loans, Swingline loans and Eurodollar loans, based on the utilization of the total elected commitments under the Oasis Credit Facility, as follows: Total Commitment Utilization Percentage Applicable Margin for ABR Loans or Swingline Loans Applicable Margin for Eurodollar Loans Commitment Fee Rates Less than 25% 0.75 % 2.25 % 0.50 % Greater than or equal to 25% but less than 50% 1.00 % 2.50 % 0.50 % Greater than or equal to 50% but less than 75% 1.25 % 2.75 % 0.50 % Greater than or equal to 75% but less than 90% 1.50 % 3.00 % 0.50 % Greater than or equal to 90% 1.75 % 3.25 % 0.50 % The Oasis Credit Facility is also amended by the Fourth Amendment to require that, subject to certain exceptions, if at any time the Company and its subsidiaries have cash on hand in an amount exceeding $60 million, subject to certain working capital adjustments, such cash must be used to make prepayments of borrowings under the Oasis Credit Facility. In addition, the financial covenants in the Oasis Credit Facility have been amended to provide that the Company’s Current Ratio (as defined in the Oasis Credit Facility) has been waived for the fiscal quarter ending June 30, 2020 and the Company’s Ratio of Total Debt to EBITDAX (as defined in the Oasis Credit Facility, the “Leverage Ratio”) shall not, for the four quarter period ended on the last day of each fiscal quarter, be greater than 4.00 to 1.00. The Company was in compliance with the financial covenants of the Oasis Credit Facility as of March 31, 2020. However, based on the current commodity price environment, the Company currently expects it will be unable to comply with the Leverage Ratio beginning with the fourth quarter of 2020. Failure to comply with this covenant, if not waived, would result in an Event of Default under the Oasis Credit Facility, the potential acceleration of outstanding debt thereunder and the potential liquidation of the collateral securing such debt. An acceleration under the Oasis Credit Facility could result in an event of default and an acceleration under the indentures for the Company’s Notes. OMP Operating LLC revolving line of credit. Through its ownership of OMP, the Company has access to a senior secured revolving credit facility (the “OMP Credit Facility,” and, together with the Oasis Credit Facility, the “Revolving Credit Facilities”) among OMP, as parent, OMP Operating LLC, a subsidiary of OMP, as borrower, Wells Fargo Bank, N.A., as administrative agent (the “OMP Administrative Agent”) and the lenders party thereto. The OMP Credit Facility, which has a maturity date of September 25, 2022, is available to fund working capital and to finance acquisitions and other capital expenditures of OMP. As of March 31, 2020, the aggregate commitments under the OMP Credit Facility were $575.0 million. At March 31, 2020, the Company had $487.5 million of borrowings outstanding under the OMP Credit Facility at a weighted average interest rate of 2.9%, excluding the rate impact for the additional interest charges detailed below, and an outstanding letter of credit of $1.7 million, resulting in an unused borrowing base capacity of $85.8 million. The unused portion of the OMP Credit Facility is subject to a commitment fee ranging from 0.375% to 0.500%. OMP Operating LLC was in compliance with the covenants of the OMP Credit Facility as of March 31, 2020, except as follows. As a result of ongoing internal oversight processes, OMP Operating LLC identified that a Control Agreement (as defined in the OMP Credit Facility) had not been executed for a certain bank account (the “JPM Account”) held at JPMorgan Chase Bank, N.A. (“JPMorgan”), who is a lender under the OMP Credit Facility. The Control Agreement serves to establish a lien in favor of the lenders under the OMP Credit Facility with respect to the JPM Account. On May 11, 2020, OMP Operating LLC executed a Control Agreement with both the OMP Administrative Agent and JPMorgan, thereby completing the documentation required under the OMP Credit Facility. Despite the Control Agreement’s execution, the failure to have had it in place before the JPM Account was initially funded with cash represents a past Event of Default (as defined in the OMP Credit Facility). On May 15, 2020, OMP Operating LLC entered into a limited waiver (the “Limited Waiver”) of this past Event of Default with the Majority Lenders (as defined in the OMP Credit Facility), which provides forbearance of additional interest owed arising from this past Event of Default until the earlier to occur of (i) November 10, 2020 and (ii) an Event of Default. Pursuant to the Limited Waiver, OMP Operating LLC recorded additional interest charges of approximately $25.9 million in the unaudited condensed consolidated financial statements as of March 31, 2020. There are no cross-default rights between the Revolving Credit Facilities. The Revolving Credit Facilities are recorded at values that approximate fair value since their variable interest rates are tied to current market rates. Senior unsecured notes. At March 31, 2020, the Company had $1,580.9 million principal amount of senior unsecured notes outstanding with maturities ranging from November 2021 to May 2026 and coupons ranging from 6.25% to 6.875% (the “Senior Notes”). Prior to certain dates, the Company has the option to redeem some or all of the Senior Notes for cash at certain redemption prices equal to a certain percentage of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. During the three months ended March 31, 2020, the Company repurchased an aggregate principal amount of $133.9 million of its outstanding Senior Notes for an aggregate cost of $52.9 million. The repurchases consisted of $28.2 million principal amount of the 6.50% senior unsecured notes due November 1, 2021, $56.5 million principal amount of the 6.875% senior unsecured notes due March 15, 2022, $44.2 million principal amount of the 6.875% senior unsecured notes due January 15, 2023 and $4.9 million principal amount of the 6.25% senior unsecured notes due May 1, 2026. As a result of these repurchases, the Company recognized a pre-tax gain of $80.2 million, which was net of unamortized deferred financing costs write-offs of $0.8 million, and is reflected in gain on extinguishment of debt on the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2020. Senior unsecured convertible notes. At March 31, 2020, the Company had $244.8 million of 2.625% senior unsecured convertible notes due September 2023 (the “Senior Convertible Notes”). During the three months ended March 31, 2020, the Company repurchased a principal amount of $23.0 million of its outstanding Senior Convertible Notes, for an aggregate cost of $15.2 million. As a result of these repurchases, the Company recognized a pre-tax gain of $3.7 million, which was net of write-offs of unamortized debt discount of $4.2 million, the equity component of the senior unsecured convertible notes of $0.3 million and unamortized deferred financing costs of $0.2 million, and is reflected in gain on extinguishment of debt on the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2020. The Company has the option to settle conversions of the Senior Convertible Notes with cash, shares of common stock or a combination of cash and common stock at its election. The Company’s intent is to settle the principal amount of the Senior Convertible Notes in cash upon conversion. Prior to March 15, 2023, the Senior Convertible Notes will be convertible only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2016 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (ii) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of the Senior Convertible Notes for each trading day of the Measurement Period is less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (iii) upon the occurrence of specified corporate events, including certain distributions or a fundamental change. On or after March 15, 2023, the Senior Convertible Notes will be convertible at any time until the second scheduled trading day immediately preceding their September 15, 2023 maturity date. The Senior Convertible Notes will be convertible at an initial conversion rate of 76.3650 shares of the Company’s common stock per $1,000 principal amount of the Senior Convertible Notes, which is equivalent to an initial conversion price of approximately $13.10. The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date or a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its Senior Convertible Notes in connection with such corporate event or redemption in certain circumstances. As of March 31, 2020, none of the contingent conditions allowing holders of the Senior Convertible Notes to convert these notes had been met. In addition, the Company was in compliance with the terms of the indentures for the Senior Convertible Notes as of March 31, 2020. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The following table reflects the changes in the Company’s ARO during the three months ended March 31, 2020: (In thousands) Balance at December 31, 2019 $ 56,784 Liabilities incurred during period 333 Liabilities settled during period (194) Accretion expense during period (1) 765 Balance at March 31, 2020 $ 57,688 ___________________ (1) Included in depreciation, depletion and amortization on the Company’s Condensed Consolidated Statements of Operations. At March 31, 2020, the current portion of the total ARO balance was approximately $0.3 million and was included in accrued liabilities on the Company’s Condensed Consolidated Balance Sheet. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended March 31, 2020 was 5.6% on a pre-tax loss of $4,589.0 million, as compared to an effective tax rate of 3.3% on a pre-tax loss of $111.7 million for the three months ended March 31, 2019. The effective tax rate for the three months ended March 31, 2020 was lower than the statutory federal rate of 21% primarily due to the significant increase in the valuation allowance recorded in the first quarter of 2020. The effective tax rate for the three months ended March 31, 2019 was lower than the statutory federal rate of 21% primarily due to income attributable to non-controlling interests as compared to forecasted pre-tax book income and the impact of equity-based compensation shortfalls. These decreases were partially offset by state income taxes and the impact of other permanent differences, primarily non-deductible executive compensation. Valuation allowance. The Company increased its valuation allowance to $830.4 million as of March 31, 2020. Based on the material write-down of the carrying value of the Company’s oil and gas properties recognized in the first quarter of 2020 and the Company’s expected operating results in subsequent quarters, the Company projects it will be in a net deferred tax asset position at December 31, 2020. The Company concluded it is more likely than not that some or all of the benefits from its deferred tax assets will not be realized, and as such, recorded a valuation allowance on these assets. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of deferred tax assets. A significant piece of objective negative evidence evaluated is the cumulative loss incurred over recent years. Such objective negative evidence limits the ability to consider other subjective positive evidence. The amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as future growth. As such, the Company will continue to assess the valuation allowance on an ongoing basis. As of December 31, 2019, the Company had a valuation allowance of $2.9 million recorded against Montana net operating loss carryforwards. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Restricted stock awards. The Company has granted restricted stock awards to its employees and directors under its Amended and Restated 2010 Long Term Incentive Plan, the majority of which vest over a three During the three months ended March 31, 2020, employees and directors of the Company were granted restricted stock awards equal to 3,505,629 shares of common stock with a $3.36 weighted average grant date per share value. Equity-based compensation expense recorded for restricted stock awards was $4.4 million and $6.4 million for the three months ended March 31, 2020 and 2019, respectively. Equity-based compensation expense is included in general and administrative expenses on the Company’s Condensed Consolidated Statements of Operations. Performance share units. The Company has granted performance share units (“PSUs”) to its officers under its Amended and Restated 2010 Long Term Incentive Plan. The PSUs are awards of restricted stock units that may be earned, if at all, based on the level of achievement with respect to the applicable performance metrics, and each PSU that is earned represents the right to receive one share of the Company’s common stock upon settlement. The Company accounted for these PSUs as equity awards pursuant to the FASB’s authoritative guidance for share-based payments. The number of PSUs to be earned is subject to a market condition, which is based on a comparison of the total shareholder return (“TSR”) achieved with respect to shares of the Company’s common stock against the TSR achieved by a defined peer group at the end of the applicable performance periods. Depending on the Company’s TSR performance relative to the defined peer group, and subject to an adjustment based on the Company’s internal rate of return for certain PSUs, award recipients may earn between 0% and 240% of the target number of PSUs granted. All compensation expense related to the PSUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. The aggregate grant date fair value of the market-based awards was determined using a Monte Carlo simulation model. The Monte Carlo simulation model uses assumptions regarding random projections and must be repeated numerous times to achieve a probabilistic assessment. The key valuation assumptions for the Monte Carlo model are the forecast period, risk-free interest rates, stock price volatility, initial value, stock price on the date of grant and correlation coefficients. The risk-free interest rates are the U.S. Treasury bond rates on the date of grant that correspond to each performance period. The initial value is the average of the volume weighted average prices for the 30 trading days prior to the start of the performance cycle for the Company and each of its peers. Volatility is the standard deviation of the average percentage change in stock price over a historical period for the Company and each of its peers. The correlation coefficients are measures of the strength of the linear relationship between and amongst the Company and its peers estimated based on historical stock price data. The following assumptions were used for the Monte Carlo model to determine the grant date fair value and associated equity-based compensation expense of the PSUs granted during the three months ended March 31, 2020: Forecast period (years) 2 - 4 Risk-free interest rates 1.53% - 1.55% Oasis stock price volatility 68.56 % Oasis initial value $3.19 Oasis stock price on date of grant $2.77 During the three months ended March 31, 2020, officers of the Company were granted 2,429,747 PSUs with a $2.77 weighted average grant date per unit value. Equity-based compensation expense recorded for PSUs was $2.3 million and $2.5 million for the three months ended March 31, 2020 and 2019, respectively. Equity-based compensation expense is included in general and administrative expenses on the Company’s Condensed Consolidated Statements of Operations. OMP phantom unit awards. The Company has granted OMP phantom unit awards (the “OMP Phantom Units”) to its employees under its Amended and Restated 2010 Long Term Incentive Plan. Each OMP Phantom Unit represents the right to receive, upon vesting of the award, a cash payment equal to the fair market value of one OMP common unit on the day prior to the date it vests (the “Vesting Date”). Award recipients are also entitled to Distribution Equivalent Rights (“DER”) with respect to each OMP Phantom Unit received. Each DER represents the right to receive, upon vesting of the award, a cash payment equal to the value of the distributions paid on one OMP common unit between the grant date and the applicable Vesting Date. The OMP Phantom Units generally vest in equal installments each year over a three The OMP Phantom Units are accounted for as liability-classified awards since the awards will settle in cash, and equity-based compensation expense is accounted for under the fair value method in accordance with GAAP. Under the fair value method for liability-classified awards, compensation expense is remeasured each reporting period at fair value based upon the closing price of a publicly traded common unit. The Company will directly pay, or will reimburse OMP, for the cash settlement amount of these awards. During the three months ended March 31, 2020, the Company granted 241,720 OMP Phantom Units to certain employees of Oasis with a weighted average grant date fair value of $16.69 per unit. Equity-based compensation for the OMP Phantom Units was a $0.6 million benefit and a $0.7 million expense for the three months ended March 31, 2020 and 2019, respectively, and is included in general and administrative expenses on the Company’s Condensed Consolidated Statements of Operations. one |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to Oasis common stockholders by the weighted average number of shares outstanding for the periods presented. The calculation of diluted earnings (loss) per share includes the potential dilutive impact of unvested restricted stock awards and contingently issuable shares related to PSUs and the Senior Convertible Notes during the periods presented, unless its effect is anti-dilutive. There are no adjustments made to the income (loss) attributable to Oasis available to common stockholders in the calculation of diluted earnings (loss) per share. The following is a calculation of the basic and diluted weighted average shares outstanding for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (In thousands) Basic and diluted weighted average common shares outstanding 316,828 314,464 For the three months ended March 31, 2020 and 2019, the Company incurred a net loss, and therefore the diluted loss per share calculation for those periods excludes the anti-dilutive effect of unvested stock awards. The following is a calculation of weighted average common shares excluded from diluted loss per share due to the anti-dilutive effect: Three Months Ended March 31, 2020 2019 (In thousands) Restricted stock awards and PSUs 11,166 9,800 The Company has the option to settle conversions of its Senior Convertible Notes (see Note 10 — Long-Term Debt) with cash, shares of common stock or a combination of cash and common stock at its election. The Company’s intent is to settle the principal amount of the Senior Convertible Notes in cash upon conversion. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the notes (conversion spread) is considered in the diluted earnings per share computation under the treasury stock method. As of March 31, 2020 and 2019 , the conversion value did not exceed the principal amount of the notes, and accordingly, there was no impact to diluted loss per share for the three months ended March 31, 2020 and 2019 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information As of March 31, 2020, the Company had two reportable segments: exploration and production and midstream. In conjunction with the Well Services Exit during the three months ended March 31, 2020, the Company eliminated its well services segment and reported the remaining services performed by OWS within its exploration and production segment. Prior to the Well Services Exit, the Company had three reportable segments: exploration and production, midstream and well services. To conform to the current period reportable segments presentation, the prior periods have been restated to reflect the change in reportable segments. The Company’s exploration and production segment is engaged in the acquisition and development of oil and gas properties. Revenues for the exploration and production segment are primarily derived from the sale of crude oil and natural gas production. The Company’s midstream business segment performs midstream services including: (i) natural gas gathering, compression, processing, gas lift and NGL storage services; (ii) crude oil gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. Revenues for the midstream segment are primarily derived from performing these midstream services to support the exploration and production operations of the Company as well as third-party producers. The revenues and expenses related to work performed by the midstream segment for the Company’s ownership interests are eliminated in consolidation, and only the revenues and expenses related to non-affiliated interest owners are included in the Company’s Condensed Consolidated Statements of Operations. The Company’s corporate activities have been allocated to the supported business segments accordingly. Management evaluates the performance of the Company’s business segments based on operating income (loss), which is defined as segment operating revenues less operating expenses, including depreciation, depletion and amortization. The following table summarizes financial information for the Company’s two business segments for the periods presented: Exploration and Midstream Eliminations Consolidated (In thousands) Three months ended March 31, 2020: Revenues from non-affiliates $ 331,387 $ 56,411 $ — $ 387,798 Inter-segment revenues — 68,544 (68,544) — Total revenues 331,387 124,955 (68,544) 387,798 Operating loss (4,817,255) (42,226) (3,047) (4,862,528) Other income (expense), net 303,998 (30,483) — 273,515 Loss before income taxes including non-controlling interests $ (4,513,257) $ (72,709) $ (3,047) $ (4,589,013) Three months ended March 31, 2019: Revenues from non-affiliates $ 527,711 $ 48,021 $ — $ 575,732 Inter-segment revenues — 58,561 (58,561) — Total revenues 527,711 106,582 (58,561) 575,732 Operating income 2,338 49,806 (1,700) 50,444 Other expense, net (158,377) (3,748) — (162,125) Income (loss) before income taxes including non-controlling interests $ (156,039) $ 46,058 $ (1,700) $ (111,681) At March 31, 2020: Property, plant and equipment, net $ 1,205,700 $ 985,791 $ (42,812) $ 2,148,679 Total assets (1) 1,722,331 2,080,359 (932,855) 2,869,835 At December 31, 2019: Property, plant and equipment, net $ 5,939,389 $ 1,078,903 $ (40,516) $ 6,977,776 Total assets (1) 6,502,214 1,101,401 (104,362) 7,499,253 ___________________ |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has various commitment agreements and other contractual obligations which are issued in the normal course of business. As of March 31, 2020, the Company’s material off-balance sheet arrangements and transactions include $20.6 million in outstanding letters of credit issued under its Revolving Credit Facilities (see Note 10 — Long-Term Debt) and $66.7 million in surety bonds issued as financial assurance on certain agreements. As of March 31, 2020, there have been no material changes to the Company’s future commitments disclosed in Note 22 — Commitments and Contingencies in the Company’s 2019 Annual Report. Litigation. The Company is party to various legal and/or regulatory proceedings from time to time arising in the ordinary course of business. When the Company determines that a loss is probable of occurring and is reasonably estimable, the Company accrues an undiscounted liability for such contingencies based on its best estimate using information available at the time. The Company discloses contingencies where an adverse outcome may be material, or in the judgment of management, the matter should otherwise be disclosed. As of March 31, 2020, a loss accrual of $20 million has been recognized in accrued liabilities in the Company’s Condensed Consolidated Balance Sheet, which the Company believes is the estimable amount of loss that could potentially be incurred from its pending legal proceedings based upon currently available information. Mirada litigation. On March 23, 2017, Mirada Energy, LLC, Mirada Wild Basin Holding Company, LLC and Mirada Energy Fund I, LLC (collectively, “Mirada”) filed a lawsuit against Oasis, OPNA and OMS, seeking monetary damages in excess of $100 million, declaratory relief, attorneys’ fees and costs ( Mirada Energy, LLC, et al. v. Oasis Petroleum North America LLC, et al .; in the 334th Judicial District Court of Harris County, Texas; Case Number 2017-19911). Mirada asserts that it is a working interest owner in certain acreage owned and operated by the Company in Wild Basin. Specifically, Mirada asserts that the Company has breached certain agreements by: (1) failing to allow Mirada to participate in the Company’s midstream operations in Wild Basin; (2) refusing to provide Mirada with information that Mirada contends is required under certain agreements and failing to provide information in a timely fashion; (3) failing to consult with Mirada and failing to obtain Mirada’s consent prior to drilling more than one well at a time in Wild Basin; and (4) overstating the estimated costs of proposed well operations in Wild Basin. Mirada seeks a declaratory judgment that the Company be removed as operator in Wild Basin at Mirada’s election and that Mirada be allowed to elect a new operator; certain agreements apply to the Company and Mirada and Wild Basin with respect to this dispute; the Company be required to provide all information within its possession regarding proposed or ongoing operations in Wild Basin; and the Company not be permitted to drill, or propose to drill, more than one well at a time in Wild Basin without obtaining Mirada’s consent. Mirada also seeks a declaratory judgment with respect to the Company’s current midstream operations in Wild Basin. Specifically, Mirada seeks a declaratory judgment that Mirada has a right to participate in the Company’s Wild Basin midstream operations, consisting of produced water disposal, crude oil gathering and natural gas gathering and processing; that, upon Mirada’s election to participate, Mirada is obligated to pay its proportionate costs of the Company’s midstream operations in Wild Basin; and that Mirada would then be entitled to receive a share of revenues from the midstream operations and would not be charged any amount for its use of these facilities for production from the “Contract Area.” On June 30, 2017, Mirada amended its original petition to add a claim that the Company has breached certain agreements by charging Mirada for midstream services provided by its affiliates and to seek a declaratory judgment that Mirada is entitled to be paid its share of total proceeds from the sale of hydrocarbons received by OPNA or any affiliate of OPNA without deductions for midstream services provided by OPNA or its affiliates. On February 2, 2018 and February 16, 2018, Mirada filed a second and third amended petition, respectively. In these filings, Mirada alleged new legal theories for being entitled to enforce the underlying contracts and added Bighorn DevCo LLC (“Bighorn DevCo”), Bobcat DevCo LLC (“Bobcat DevCo”) and Beartooth DevCo LLC (“Beartooth DevCo”) as defendants, asserting that these entities were created in bad faith in an effort to avoid contractual obligations owed to Mirada. On March 2, 2018, Mirada filed a fourth amended petition that described Mirada’s alleged ownership and assignment of interests in assets purportedly governed by agreements at issue in the lawsuit. On August 31, 2018, Mirada filed a fifth amended petition that added OMP as a defendant, asserting that it was created in bad faith in an effort to avoid contractual obligations owed to Mirada. On July 2, 2019, Oasis, OPNA, OMS, OMP, Bighorn DevCo, Bobcat DevCo and Beartooth DevCo (collectively the “Oasis Entities”) counterclaimed against Mirada for a judgment declaring that Oasis Entities are not obligated to purchase, manage, gather, transport, compress, process, market, sell or otherwise handle Mirada’s proportionate share of oil and gas produced from OPNA-operated wells. The counterclaim also seeks attorney’s fees, costs and expenses. On November 1, 2019, Mirada filed a sixth amended petition that stated that Mirada seeks in excess of $200 million in damages and asserted that OMS is an agent of OPNA and OPNA, OMS, OMP, Bighorn DevCo, Bobcat DevCo and Beartooth DevCo are agents of Oasis. Mirada also changed its allegation that it may elect a new operator for the subject wells to instead allege that Mirada may remove Oasis as operator. On November 1, 2019, the Oasis Entities amended their counterclaim against Mirada for a judgment declaring that a provision in one of the agreements does not incorporate by reference any provisions in a certain participation agreement and joint operating agreement. The additional counterclaim also seeks attorney’s fees, costs and expenses. On the same day, the Oasis Entities filed an amended answer asserting additional defenses against Mirada’s claims. On March 13, 2020, Mirada filed a seventh amended petition that did not assert any new causes of action and did not add any new parties. Mirada did add an allegation that Oasis breached its implied duty of good faith and fair dealing with respect to certain contracts. On April 30, 2020, Mirada abandoned its prior claims related to overstating the estimated costs of proposed well operations in Wild Basin. At this point, it is unclear what impact this has on damages because Mirada asserts that its information and failure to consult and obtain consent claims result in the same damages as its abandoned estimated costs claim. The Company believes that Mirada’s claims are without merit, that the Company has complied with its obligations under the applicable agreements and that some of Mirada’s claims are grounded in agreements that do not apply to the Company. The Company filed answers denying all of Mirada’s claims and intends and continues to vigorously defend against Mirada’s claims. Discovery is ongoing, and each of the parties has made a number of procedural filings and motions, and additional filings and motions can be expected over the course of the claim. Trial is scheduled for October 2020. The Company cannot predict or guarantee the ultimate outcome or resolution of such matter. If such matter were to be determined adversely to the Company’s interests, or if the Company were forced to settle such matter for a significant amount, such resolution or settlement could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Such an adverse determination could materially impact the Company’s ability to operate its properties in Wild Basin or develop its identified drilling locations in Wild Basin on its current development schedule. A determination that Mirada has a right to participate in the Company’s midstream operations could materially reduce the interests of the Company in their current assets and future midstream opportunities and related revenues in Wild Basin. In addition, the Company has agreed to indemnify OMP for any losses resulting from this litigation under the omnibus agreement it entered into with OMP at the time of OMP’s initial public offering. Solomon litigation. On or about August 28, 2019, Oasis Petroleum LLC, a wholly-owned subsidiary of the Company (“OP LLC”), was named as a defendant in the lawsuit styled Andrew Solomon, on behalf of himself and those similarly situated vs. Oasis Petroleum, LLC , pending in the United States District Court for the District of North Dakota. The lawsuit alleged violations of the federal Fair Labor Standards Act (the “FLSA”) and Title 29 of the North Dakota Century Code (“Title 29”) as the result of OP LLC’s alleged practice of paying the plaintiff and similarly situated current and former employees overtime at rates less than required by applicable law, or failing to pay for certain overtime hours worked. The lawsuit requested that: (i) its federal claims be advanced as a collective action, with a class of all operators, technicians, and all other employees in substantially similar positions employed by OP LLC who were paid hourly for at least one week during the three year period prior to the commencement of the lawsuit, who worked 40 or more hours in at least one workweek and/or eight or more hours on at least one workday; and (ii) its state claims be advanced as a class action, with a class of all Operators, Technicians, and all other employees in substantially similar positions employed by OP LLC in North Dakota during the two year period prior to the commencement of the lawsuit, who worked 40 or more hours in at least one workweek and/or worked eight or more hours in a day on at least one workday. No motion has been filed for class certification, and the Company cannot predict whether such a motion will be filed or a class certified. The Company believes that Mr. Solomon’s claims are without merit and that OP LLC has complied with its obligations under the FLSA and Title 29. OP LLC has filed an answer denying all of Mr. Solomon’s claims and intends to vigorously defend against the claims. The Company cannot predict or guarantee the ultimate outcome or resolutions of such matter. If such matter were to be determined adversely to the Company’s interests, or if the Company were forced to settle such matter for a significant amount, such resolution or settlement could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company has evaluated the period after the balance sheet date, noting no subsequent events or transactions that required recognition or disclosure in the financial statements, other than as previously disclosed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the Condensed Consolidated Balance Sheet at December 31, 2019 is derived from audited financial statements. Certain reclassifications of prior year balances have been made to conform amounts to current year classifications. These reclassifications have no impact on net income. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of the Company’s financial position, have been included. Management has made certain estimates and assumptions that affect reported amounts in the unaudited condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. These interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report”). |
Consolidation | Consolidation. The accompanying unaudited condensed consolidated financial statements of the Company include the accounts of Oasis, the accounts of wholly-owned subsidiaries and the accounts of OMP and its general partner, OMP GP LLC (“OMP GP”). The Company has determined that the partners with equity at risk in OMP lack the authority, through voting rights or similar rights, to direct the activities that most significantly impact OMP’s economic performance. Therefore, as the limited partners of OMP do not have substantive kick-out or substantive participating rights over OMP GP, OMP is a variable interest entity. Through the Company’s ownership interest in OMP GP, the Company has the authority to direct the activities that most significantly affect economic performance and the right to receive benefits that could be potentially significant to OMP. Therefore, the Company is considered the primary beneficiary and consolidates OMP and records a non-controlling interest for the interest owned by the public. All intercompany balances and transactions have been eliminated upon consolidation. |
Risks and Uncertainties | Risks and Uncertainties As a crude oil and natural gas producer, the Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for crude oil and natural gas, which are dependent upon numerous factors beyond its control such as economic, political and regulatory developments and competition from other energy sources. The energy markets have historically been very volatile, and there can be no assurance that crude oil and natural gas prices will not be subject to wide fluctuations in the future. If prices for crude oil, natural gas and natural gas liquids (“NGLs”) continue to decline or for an extended period of time remain at depressed levels, such commodity price environment could have a material adverse effect on the Company’s financial position, results of operations, cash flows, the quantities of crude oil and natural gas reserves that may be economically produced and the Company’s access to capital. The Company considered the impact of the novel coronavirus 2019 (“COVID-19”) pandemic on the assumptions and estimates used by management in the unaudited condensed consolidated financial statements for the reporting periods presented. As a result of the significant decline in current and expected future commodity prices, the Company recognized material asset impairment charges as of March 31, 2020 (see Note 8 — Property, Plant and Equipment). Management’s estimates and assumptions were based on historical data and consideration of future market conditions. Given the uncertainty inherent in any projection, which is heightened by the possibility of unforeseen additional impacts from the COVID-19 pandemic, actual results |
Going Concern | Going Concern Based on the current commodity price environment, the Company currently expects it will be unable to comply with the leverage ratio covenant under its revolving credit facility (the “Oasis Credit Facility”), as amended in April 2020, beginning with the fourth quarter of 2020, which raises substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued. Failure to comply with this covenant, if not waived, would result in an event of default under the Oasis Credit Facility, the potential acceleration of outstanding debt thereunder and the potential liquidation of the collateral securing such debt. An acceleration under the Oasis Credit Facility could result in an event of default and an acceleration under the indentures for the Company’s senior unsecured notes and senior unsecured convertible notes (collectively, the “Notes”). The Company is actively pursuing, with support from its Board of Directors, a variety of transactions and cost-cutting measures, including but not limited to, reduction in corporate discretionary expenditures, refinancing transactions, capital exchange transactions, asset divestitures, reduction in capital expenditures in 2020 by approximately 50% to 60% from the initial total 2020 capital expenditure plan announced in February 2020 and operational efficiencies. Management believes these measures, as the Company continues to implement them, may enable it to comply with its leverage ratio covenant. However, the Company cannot predict the extent to which any of these measures will be successful, if at all. The Company’s unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not reflect any adjustments that might result if the Company is unable to continue as a going concern. As a result of the foregoing liquidity concerns and the Company’s reduction in planned capital expenditures in 2020 in response to the depressed commodity price environment, the Company’s estimated quantity of proved reserves has decreased significantly from the previous estimate disclosed in its 2019 Annual Report. This decrease is primarily due to the removal of proved undeveloped reserves in contemplation of the ongoing market downturn and uncertainty regarding the Company’s ability to finance the development of such reserves within five years. |
Dividends | Dividends The Company has not paid any cash dividends since its inception. Covenants contained in the Oasis Credit Facility and the indentures governing the Company’s senior notes restrict the payment of cash dividends on its common stock. The Company currently intends to retain all earnings for the development of its business and for repayment of outstanding debt, and the Company does not anticipate declaring or paying any cash dividends to holders of its common stock. |
Fair Value Measurement | Fair value measurement. In the first quarter of 2020, the Company adopted Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement In accordance with the FASB’s authoritative guidance on fair value measurements, the Company’s financial assets and liabilities are measured at fair value on a recurring basis. The Company’s financial instruments, including certain cash and cash equivalents, accounts receivable, accounts payable and other payables, are carried at cost, which approximates their respective fair market values due to their short-term maturities. The Company recognizes its non-financial assets and liabilities, such as asset retirement obligations (“ARO”) and oil and gas and other properties, at fair value on a non-recurring basis. As defined in the authoritative guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). To estimate fair value, the Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The authoritative guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (“Level 1” measurements) and the lowest priority to unobservable inputs (“Level 3” measurements). The three levels of the fair value hierarchy are as follows: Level 1 — Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Pricing inputs, other than unadjusted quoted prices in active markets included in Level 1, are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 — Pricing inputs are generally less observable from objective sources, requiring internally developed valuation methodologies that result in management’s best estimate of fair value. Financial Assets and Liabilities Non-Financial Assets and Liabilities The fair value of the Company’s non-financial assets measured at fair value on a non-recurring basis is determined using valuation techniques that include Level 3 inputs. Asset retirement obligations. The Company records the fair value of its ARO liability in the period in which the liability is incurred. Fair value is determined by calculating the present value of estimated future cash flows related to the liability. Estimating the future ARO requires management to make estimates and judgments regarding the timing and existence of a liability, as well as what constitutes adequate restoration when considering current regulatory requirements. Inherent in the fair value calculation are numerous assumptions and judgments, including the ultimate costs, inflation factors, credit-adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. The fair value for ARO liabilities incurred during the three months ended March 31, 2020 was determined using an inflation factor of 2.5% and a credit-adjusted discount rate of 8.4% (see Note 11 — Asset Retirement Obligations). |
Accounts Receivable - Credit Losses | Accounts receivable — credit losses. In the first quarter of 2020, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Income taxes. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as separate entity financial statements and interim recognition of enactment of tax laws or rate changes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim reporting periods within those years. The Company is currently evaluating the effect of ASU 2019-12, but does not expect the adoption of this guidance to have a material impact on its financial position, cash flows or result of operations. Reference rate reform. In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by ASU 2020-04 and the impact the new standard will have on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition | Prior period performance obligations. For sales of commodities, the Company records revenue in the month production is delivered to the purchaser. However, settlement statements and payments are typically not received for 20 to 60 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales once payment is received from the purchaser. Such differences have historically not been significant. The Company uses knowledge of its properties, its properties’ historical performance, spot market prices and other factors as the basis for these estimates.Prior period performance obligations. The Company records revenue for midstream services or product sales when the performance obligations under the terms of its customer contracts are satisfied. The Company measures the satisfaction of its performance obligations using the output method based upon the volume of crude oil, natural gas or water that flows through its systems. In certain cases, the Company is required to estimate these volumes during a reporting period and record any differences between the estimated volumes and actual volumes in the following reporting period. Such differences have historically not been significant.Contract balancesContract balances are the result of timing differences between revenue recognition, billings and cash collections. Contract liabilities are recorded for consideration received from customers primarily related to (i) temporary deficiency quantities under minimum volume commitments, which are recognized as revenue when the customer makes up the volumes or the deficiency makeup period expires and (ii) aid in construction payments received from customers which are recognized as revenue over the expected period of future benefit. The Company does not recognize contract assets or contract liabilities under its customer contracts for which invoicing occurs once the Company’s performance obligations have been satisfied and payment is unconditional. Contract liabilities are classified as current or long-term based on the timing of when the Company expects to recognize revenue. The Company has elected practical expedients, pursuant to Accounting Standards Codification 606, Revenue from Contracts with Customers |
Inventory | Inventory, including long-term inventory, is stated at the lower of cost and net realizable value with cost determined on an average cost method. The Company assesses the carrying value of inventory and uses estimates and judgment when making any adjustments necessary to reduce the carrying value to net realizable value. Among the uncertainties that impact the Company’s estimates are the applicable quality and location differentials to include in the Company’s net realizable value analysis as well as the liquidation timing of the inventory. Changes in assumptions made as to the timing of a sale can materially impact net realizable value. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |
Changes in Company's Contract Liabilities | Revenues associated with contracts with customers for midstream services under fee-based arrangements and midstream product sales from purchase arrangements were as follows for the three months ended March 31, 2020 and 2019: Midstream Revenues (1) Three Months Ended March 31, 2020 2019 (In thousands) Midstream service revenues Crude oil and natural gas revenues $ 26,921 $ 24,664 Produced and flowback water revenues 11,251 9,033 Total midstream service revenues $ 38,172 $ 33,697 Midstream product revenues Natural gas and NGL revenues $ 16,039 $ 12,797 Freshwater revenues 2,200 1,527 Total midstream product revenues $ 18,239 $ 14,324 Total midstream revenues $ 56,411 $ 48,021 __________________ (1) Represents midstream revenues, excluding intercompany revenues for work performed by the midstream business segment for the Company’s ownership interests, which are eliminated in consolidation and are therefore not included in consolidated midstream revenues. (In thousands) Balance as of December 31, 2019 $ 2,105 Cash received — Revenues recognized (117) Balance as of March 31, 2020 $ 1,988 |
Remaining Performance Obligation Expected Satisfaction Period | The following table presents estimated revenue allocated to remaining performance obligations for contracted revenues that are unsatisfied (or partially satisfied) as of March 31, 2020: (In thousands) 2020 (excluding the three months ended March 31, 2020) $ 12,403 2021 18,580 2022 18,302 2023 12,628 2024 11,874 Thereafter 2,768 Total $ 76,555 |
Exploration and Production Revenues | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenues associated with contracts with customers for crude oil, natural gas and NGL sales and other services were as follows for the three months ended March 31, 2020 and 2019: Exploration and Production Revenues Three Months Ended March 31, 2020 2019 (In thousands) Crude oil revenues $ 212,793 $ 318,120 Purchased crude oil sales 85,757 147,136 Natural gas and NGL revenues 26,335 50,662 Purchased natural gas sales 521 1,335 Other services revenues (1) 5,981 10,458 Total exploration and production revenues $ 331,387 $ 527,711 __________________ (1) Represents revenues for equipment rentals and well services provided by the Company’s wholly-owned subsidiary, Oasis Well Services LLC (“OWS”), excluding intercompany revenues for services performed for the Company’s ownership interests, which are eliminated in consolidation and are therefore not included in consolidated exploration and production revenues. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The Company’s total inventory consists of the following: March 31, 2020 December 31, 2019 (In thousands) Inventory Crude oil inventory $ 7,057 $ 18,296 Equipment and materials 25,943 16,963 Total inventory $ 33,000 $ 35,259 Long-term inventory Linefill in third party pipelines $ 14,053 $ 13,924 Total long-term inventory $ 14,053 $ 13,924 Total $ 47,053 $ 49,183 |
Components of Long-term Inventory | The Company’s total inventory consists of the following: March 31, 2020 December 31, 2019 (In thousands) Inventory Crude oil inventory $ 7,057 $ 18,296 Equipment and materials 25,943 16,963 Total inventory $ 33,000 $ 35,259 Long-term inventory Linefill in third party pipelines $ 14,053 $ 13,924 Total long-term inventory $ 14,053 $ 13,924 Total $ 47,053 $ 49,183 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The following table sets forth the Company’s accounts receivable, net: March 31, 2020 December 31, 2019 (In thousands) Trade accounts $ 126,125 $ 276,629 Joint interest accounts 82,547 82,112 Other accounts 13,787 13,699 Total 222,459 372,440 Allowance for credit losses (1) (1,805) (1,259) Total accounts receivable, net $ 220,654 $ 371,181 __________________ (1) Upon adoption of ASU 2016-13, the Company recognized a cumulative-effect adjustment to retained earnings (accumulated deficit) of $0.4 million to increase its allowance for expected credit losses. Prior period amounts are not adjusted and continue to be reported in accordance with the previous guidance. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Hierarchy of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables set forth by level, within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis: Fair value at March 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds $ 152 $ — $ — $ 152 Commodity derivative instruments (see Note 7) — 261,661 — 261,661 Total assets $ 152 $ 261,661 $ — $ 261,813 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds $ 146 $ — $ — $ 146 Commodity derivative instruments (see Note 7) — 1,174 — 1,174 Total assets $ 146 $ 1,174 $ — $ 1,320 Liabilities: Commodity derivative instruments (see Note 7) $ — $ 19,815 $ — $ 19,815 Total liabilities $ — $ 19,815 $ — $ 19,815 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity Derivative Instruments | At March 31, 2020, the Company had the following outstanding commodity derivative instruments: Commodity Settlement Derivative Volumes Weighted Average Prices Fair Value Assets Fixed Price Swaps Sub-Floor Floor Ceiling (In thousands) Crude oil 2020 Fixed price swaps 4,733,000 Bbl $ 57.02 $ 134,306 Crude oil 2020 Two-way collar 2,322,000 Bbl $ 51.12 $ 59.79 50,178 Crude oil 2020 Three-way collar 4,859,000 Bbl $ 40.75 $ 53.16 $ 63.61 55,604 Crude oil 2021 Fixed price swaps 310,000 Bbl $ 56.01 6,661 Crude oil 2021 Two-way collar 248,000 Bbl $ 51.38 $ 59.33 4,274 Crude oil 2021 Three-way collar 1,313,000 Bbl $ 40.00 $ 50.79 $ 62.46 10,638 $ 261,661 |
Gains and Losses from Commodity Derivative Instruments | The following table summarizes the location and amounts of gains and losses from the Company’s commodity derivative instruments recorded in the Company’s Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended March 31, Statements of Operations Location 2020 2019 (In thousands) Net gain (loss) on derivative instruments $ 285,322 $ (117,611) |
Summary of Gross and Net Information about Commodity Derivative Assets | The following table summarizes the location and fair value of all outstanding commodity derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets: March 31, 2020 Commodity Balance Sheet Location Gross Recognized Assets Gross Amount Offset Net Recognized Fair Value Assets (In thousands) Derivatives assets: Commodity contracts Derivative instruments — current assets $ 322,529 $ (64,239) $ 258,290 Commodity contracts Derivative instruments — non-current assets 7,186 (3,815) 3,371 Total derivatives assets $ 329,715 $ (68,054) $ 261,661 December 31, 2019 Commodity Balance Sheet Location Gross Recognized Assets/Liabilities Gross Amount Offset Net Recognized Fair Value Assets/Liabilities (In thousands) Derivatives assets: Commodity contracts Derivative instruments — current assets $ 633 $ (98) $ 535 Commodity contracts Derivative instruments — non-current assets 3,295 (2,656) 639 Total derivatives assets $ 3,928 $ (2,754) $ 1,174 Derivatives liabilities: Commodity contracts Derivative instruments — current liabilities $ 33,812 $ (14,117) $ 19,695 Commodity contracts Derivative instruments — non-current liabilities 686 (566) 120 Total derivatives liabilities $ 34,498 $ (14,683) $ 19,815 |
Summary of Gross and Net Information about Commodity Derivative Liabilities | The following table summarizes the location and fair value of all outstanding commodity derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets: March 31, 2020 Commodity Balance Sheet Location Gross Recognized Assets Gross Amount Offset Net Recognized Fair Value Assets (In thousands) Derivatives assets: Commodity contracts Derivative instruments — current assets $ 322,529 $ (64,239) $ 258,290 Commodity contracts Derivative instruments — non-current assets 7,186 (3,815) 3,371 Total derivatives assets $ 329,715 $ (68,054) $ 261,661 December 31, 2019 Commodity Balance Sheet Location Gross Recognized Assets/Liabilities Gross Amount Offset Net Recognized Fair Value Assets/Liabilities (In thousands) Derivatives assets: Commodity contracts Derivative instruments — current assets $ 633 $ (98) $ 535 Commodity contracts Derivative instruments — non-current assets 3,295 (2,656) 639 Total derivatives assets $ 3,928 $ (2,754) $ 1,174 Derivatives liabilities: Commodity contracts Derivative instruments — current liabilities $ 33,812 $ (14,117) $ 19,695 Commodity contracts Derivative instruments — non-current liabilities 686 (566) 120 Total derivatives liabilities $ 34,498 $ (14,683) $ 19,815 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table sets forth the Company’s property, plant and equipment: March 31, 2020 December 31, 2019 (In thousands) Proved oil and gas properties (1) $ 8,954,843 $ 8,724,376 Less: Accumulated depreciation, depletion, amortization and impairment (8,193,662) (3,601,019) Proved oil and gas properties, net 761,181 5,123,357 Unproved oil and gas properties 366,546 738,662 Other property and equipment (2) 1,383,856 1,279,653 Less: Accumulated depreciation and impairment (362,904) (163,896) Other property and equipment, net 1,020,952 1,115,757 Total property, plant and equipment, net $ 2,148,679 $ 6,977,776 __________________ (1) Included in the Company’s proved oil and gas properties are estimates of future asset retirement costs of $42.1 million and $42.3 million at March 31, 2020 and December 31, 2019, respectively. (2) Included in the Company’s other property and equipment are estimates of future asset retirement costs of $1.4 million at both March 31, 2020 and December 31, 2019. |
Divestitures and Assets Held _2
Divestitures and Assets Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Balance Sheet Data Related to Assets Held for Sale | The following table presents balance sheet data related to the assets held for sale related to the Well Services Exit as of March 31, 2020: March 31, 2020 (In thousands) Inventory $ 2,434 Other property and equipment 15,786 Less: Accumulated depreciation and impairment (13,111) Total assets held for sale $ 5,109 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company’s long-term debt consists of the following: March 31, 2020 December 31, 2019 (In thousands) Oasis Credit Facility $ 522,000 $ 337,000 OMP Credit Facility 487,500 458,500 Senior unsecured notes 6.50% senior unsecured notes due November 1, 2021 43,601 71,835 6.875% senior unsecured notes due March 15, 2022 834,466 890,980 6.875% senior unsecured notes due January 15, 2023 307,728 351,953 6.25% senior unsecured notes due May 1, 2026 395,122 400,000 2.625% senior unsecured convertible notes due September 15, 2023 244,840 267,800 Total principal of senior unsecured notes 1,825,757 1,982,568 Less: unamortized deferred financing costs on senior unsecured notes (13,475) (15,618) Less: unamortized debt discount on senior unsecured convertible notes (43,850) (50,877) Total long-term debt $ 2,777,932 $ 2,711,573 The Fourth Amendment amended the applicable margins and commitment fee rates with respect to Alternate Based Rate (“ABR”) loans, Swingline loans and Eurodollar loans, based on the utilization of the total elected commitments under the Oasis Credit Facility, as follows: Total Commitment Utilization Percentage Applicable Margin for ABR Loans or Swingline Loans Applicable Margin for Eurodollar Loans Commitment Fee Rates Less than 25% 0.75 % 2.25 % 0.50 % Greater than or equal to 25% but less than 50% 1.00 % 2.50 % 0.50 % Greater than or equal to 50% but less than 75% 1.25 % 2.75 % 0.50 % Greater than or equal to 75% but less than 90% 1.50 % 3.00 % 0.50 % Greater than or equal to 90% 1.75 % 3.25 % 0.50 % |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Asset Retirement Obligations | The following table reflects the changes in the Company’s ARO during the three months ended March 31, 2020: (In thousands) Balance at December 31, 2019 $ 56,784 Liabilities incurred during period 333 Liabilities settled during period (194) Accretion expense during period (1) 765 Balance at March 31, 2020 $ 57,688 ___________________ (1) Included in depreciation, depletion and amortization on the Company’s Condensed Consolidated Statements of Operations. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Based Compensation Assumptions | The following assumptions were used for the Monte Carlo model to determine the grant date fair value and associated equity-based compensation expense of the PSUs granted during the three months ended March 31, 2020: Forecast period (years) 2 - 4 Risk-free interest rates 1.53% - 1.55% Oasis stock price volatility 68.56 % Oasis initial value $3.19 Oasis stock price on date of grant $2.77 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Number of Shares Outstanding | The following is a calculation of the basic and diluted weighted average shares outstanding for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (In thousands) Basic and diluted weighted average common shares outstanding 316,828 314,464 |
Schedule of Common Shares Excluded From Diluted Earnings (Loss) per Share Calculation | The following is a calculation of weighted average common shares excluded from diluted loss per share due to the anti-dilutive effect: Three Months Ended March 31, 2020 2019 (In thousands) Restricted stock awards and PSUs 11,166 9,800 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Segments | The following table summarizes financial information for the Company’s two business segments for the periods presented: Exploration and Midstream Eliminations Consolidated (In thousands) Three months ended March 31, 2020: Revenues from non-affiliates $ 331,387 $ 56,411 $ — $ 387,798 Inter-segment revenues — 68,544 (68,544) — Total revenues 331,387 124,955 (68,544) 387,798 Operating loss (4,817,255) (42,226) (3,047) (4,862,528) Other income (expense), net 303,998 (30,483) — 273,515 Loss before income taxes including non-controlling interests $ (4,513,257) $ (72,709) $ (3,047) $ (4,589,013) Three months ended March 31, 2019: Revenues from non-affiliates $ 527,711 $ 48,021 $ — $ 575,732 Inter-segment revenues — 58,561 (58,561) — Total revenues 527,711 106,582 (58,561) 575,732 Operating income 2,338 49,806 (1,700) 50,444 Other expense, net (158,377) (3,748) — (162,125) Income (loss) before income taxes including non-controlling interests $ (156,039) $ 46,058 $ (1,700) $ (111,681) At March 31, 2020: Property, plant and equipment, net $ 1,205,700 $ 985,791 $ (42,812) $ 2,148,679 Total assets (1) 1,722,331 2,080,359 (932,855) 2,869,835 At December 31, 2019: Property, plant and equipment, net $ 5,939,389 $ 1,078,903 $ (40,516) $ 6,977,776 Total assets (1) 6,502,214 1,101,401 (104,362) 7,499,253 ___________________ |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Anticipated | Dec. 31, 2020 |
Minimum | |
Subsequent Event [Line Items] | |
Expected reduction in capital expenditures (percent) | 50.00% |
Maximum | |
Subsequent Event [Line Items] | |
Expected reduction in capital expenditures (percent) | 60.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 387,798 | $ 575,732 |
Exploration and Production Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 331,387 | 527,711 |
Midstream services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 124,955 | 106,582 |
Operating Segments | Exploration and Production Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 331,387 | 527,711 |
Operating Segments | Exploration and Production Revenues | Crude oil revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 212,793 | 318,120 |
Operating Segments | Exploration and Production Revenues | Purchased crude oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 85,757 | 147,136 |
Operating Segments | Exploration and Production Revenues | Natural gas and NGL revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 26,335 | 50,662 |
Operating Segments | Exploration and Production Revenues | Purchased natural gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 521 | 1,335 |
Operating Segments | Exploration and Production Revenues | NGLs | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5,981 | 10,458 |
Operating Segments | Midstream services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 56,411 | 48,021 |
Operating Segments | Midstream services | Crude oil and natural gas revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 26,921 | 24,664 |
Operating Segments | Midstream services | Produced and flowback water revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 11,251 | 9,033 |
Operating Segments | Midstream services | Total midstream service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 38,172 | 33,697 |
Operating Segments | Midstream services | Natural gas and NGL revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 16,039 | 12,797 |
Operating Segments | Midstream services | Freshwater revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,200 | 1,527 |
Operating Segments | Midstream services | Total midstream product revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 18,239 | $ 14,324 |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Company's Contract Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance as of December 31, 2019 | $ 2,105 |
Cash received | 0 |
Revenues recognized | (117) |
Balance as of March 31, 2020 | $ 1,988 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Timing of performance obligations | The partially and wholly unsatisfied performance obligations presented in the table above are generally limited to customer contracts which have fixed pricing and fixed volume terms and conditions, which generally include customer contracts with minimum volume commitment payment obligations. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 76,555 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12,403 |
Remaining performance obligation satisfaction period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 18,580 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 18,302 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12,628 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 11,874 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,768 |
Remaining performance obligation satisfaction period |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory | ||
Crude oil inventory | $ 7,057 | $ 18,296 |
Equipment and materials | 25,943 | 16,963 |
Total inventory | 33,000 | 35,259 |
Long-term inventory | ||
Linefill in third party pipelines | 14,053 | 13,924 |
Total long-term inventory | 14,053 | 13,924 |
Total | $ 47,053 | $ 49,183 |
Inventory (Details)
Inventory (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Crude oil inventory | |
Inventory [Line Items] | |
Impairment losses | $ 7.2 |
Long-term linefill inventory | |
Inventory [Line Items] | |
Impairment losses | $ 1.3 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | $ 222,459 | $ 372,440 | |
Allowance for doubtful accounts | (1,805) | (1,259) | |
Total accounts receivable, net | 220,654 | 371,181 | |
Cumulative-effect adjustment for adoption of ASU 2016-13 | $ (410) | ||
Trade accounts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | 126,125 | 276,629 | |
Joint interest accounts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | 82,547 | 82,112 | |
Other accounts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | $ 13,787 | $ 13,699 | |
Retained Earnings | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Cumulative-effect adjustment for adoption of ASU 2016-13 | (410) | ||
Retained Earnings | ASU 2016-13 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Cumulative-effect adjustment for adoption of ASU 2016-13 | $ (400) |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Total assets | $ 261,813 | $ 1,320 |
Liabilities: | ||
Total liabilities | 19,815 | |
Commodity derivative instruments | ||
Liabilities: | ||
Total liabilities | 19,815 | |
Money market funds | ||
Assets: | ||
Total assets | 152 | 146 |
Commodity derivative instruments | ||
Assets: | ||
Total assets | 261,661 | 1,174 |
Level 1 | ||
Assets: | ||
Total assets | 152 | 146 |
Liabilities: | ||
Total liabilities | 0 | |
Level 1 | Commodity derivative instruments | ||
Liabilities: | ||
Total liabilities | 0 | |
Level 1 | Money market funds | ||
Assets: | ||
Total assets | 152 | 146 |
Level 1 | Commodity derivative instruments | ||
Assets: | ||
Total assets | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets | 261,661 | 1,174 |
Liabilities: | ||
Total liabilities | 19,815 | |
Level 2 | Commodity derivative instruments | ||
Liabilities: | ||
Total liabilities | 19,815 | |
Level 2 | Money market funds | ||
Assets: | ||
Total assets | 0 | 0 |
Level 2 | Commodity derivative instruments | ||
Assets: | ||
Total assets | 261,661 | 1,174 |
Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | |
Level 3 | Commodity derivative instruments | ||
Liabilities: | ||
Total liabilities | 0 | |
Level 3 | Money market funds | ||
Assets: | ||
Total assets | 0 | 0 |
Level 3 | Commodity derivative instruments | ||
Assets: | ||
Total assets | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative credit risk valuation adjustment, derivative assets | $ 0.7 | |
Derivative credit risk valuation adjustment, derivative liabilities | $ 0.5 | |
Inflation factor | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset retirement obligation measurement input (percent) | 2.50% | |
Oil and gas and other properties, measurement input (percent) | 2.50% | |
NYMEX forward price | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Oil and gas and other properties, measurement input (percent) | 2.50% | |
Market-based weighted average cost of capital | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset retirement obligation measurement input (percent) | 8.40% | |
Market-based weighted average cost of capital | Discounted Cash Flow | Proved Oil And Gas Properties | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Oil and gas and other properties, measurement input (percent) | 12.70% | |
Market-based weighted average cost of capital | Discounted Cash Flow | Midstream Assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Oil and gas and other properties, measurement input (percent) | 10.40% |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Outstanding Commodity Derivative Instruments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / bblbbl | |
Derivative [Line Items] | |
Fair value assets (liabilities) | $ | $ 261,661 |
NYMEX WTI | Crude Oil | 2020 Fixed price swaps | |
Derivative [Line Items] | |
Total notional amount of oil (in Bbls) | bbl | 4,733,000 |
Average swap price (in dollars per barrel) | 57.02 |
Fair value assets (liabilities) | $ | $ 134,306 |
NYMEX WTI | Crude Oil | 2020 Two-way collar | |
Derivative [Line Items] | |
Total notional amount of oil (in Bbls) | bbl | 2,322,000 |
Average floor price (in dollars per barrel) | 51.12 |
Average ceiling price (in dollars per barrel) | 59.79 |
Fair value assets (liabilities) | $ | $ 50,178 |
NYMEX WTI | Crude Oil | 2020 Three-way collar | |
Derivative [Line Items] | |
Total notional amount of oil (in Bbls) | bbl | 4,859,000 |
Average sub-floor price (in dollars per barrel) | 40.75 |
Average floor price (in dollars per barrel) | 53.16 |
Average ceiling price (in dollars per barrel) | 63.61 |
Fair value assets (liabilities) | $ | $ 55,604 |
NYMEX WTI | Crude Oil | 2021 Fixed price swaps | |
Derivative [Line Items] | |
Total notional amount of oil (in Bbls) | bbl | 310,000 |
Average swap price (in dollars per barrel) | 56.01 |
Fair value assets (liabilities) | $ | $ 6,661 |
NYMEX WTI | Crude Oil | 2021 Two-way collar | |
Derivative [Line Items] | |
Total notional amount of oil (in Bbls) | bbl | 248,000 |
Average floor price (in dollars per barrel) | 51.38 |
Average ceiling price (in dollars per barrel) | 59.33 |
Fair value assets (liabilities) | $ | $ 4,274 |
NYMEX WTI | Crude Oil | 2021 Three-way collar | |
Derivative [Line Items] | |
Total notional amount of oil (in Bbls) | bbl | 1,313,000 |
Average sub-floor price (in dollars per barrel) | 40 |
Average floor price (in dollars per barrel) | 50.79 |
Average ceiling price (in dollars per barrel) | 62.46 |
Fair value assets (liabilities) | $ | $ 10,638 |
Derivative Instruments - Realiz
Derivative Instruments - Realized and Unrealized Gains and Losses from Commodity Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net gain (loss) on derivative instruments | $ 285,322 | $ (117,611) |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Location and Fair Value of Outstanding Commodity Derivative Instruments (Details) - Commodity derivative instruments - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, gross amounts recognized | $ 329,715 | $ 3,928 |
Derivative liability, gross amount recognized | 34,498 | |
Derivative asset, gross amounts offset | (68,054) | (2,754) |
Derivative liability, gross amounts offset | (14,683) | |
Derivative asset, net asset | 261,661 | 1,174 |
Derivative liability, net liability | 19,815 | |
Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, gross amounts recognized | 322,529 | 633 |
Derivative asset, gross amounts offset | (64,239) | (98) |
Derivative asset, net asset | 258,290 | 535 |
Noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, gross amounts recognized | 7,186 | 3,295 |
Derivative asset, gross amounts offset | (3,815) | (2,656) |
Derivative asset, net asset | $ 3,371 | 639 |
Current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, gross amount recognized | 33,812 | |
Derivative liability, gross amounts offset | (14,117) | |
Derivative liability, net liability | 19,695 | |
Noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, gross amount recognized | 686 | |
Derivative liability, gross amounts offset | (566) | |
Derivative liability, net liability | $ 120 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 8,954,843 | $ 8,724,376 |
Less: Accumulated depreciation, depletion, amortization and impairment | (8,193,662) | (3,601,019) |
Proved oil and gas properties, net | 761,181 | 5,123,357 |
Unproved oil and gas properties | 366,546 | 738,662 |
Other property and equipment | 1,383,856 | 1,279,653 |
Less: Accumulated depreciation and impairment | (362,904) | (163,896) |
Other property and equipment, net | 1,020,952 | 1,115,757 |
Total property, plant and equipment, net | $ 2,148,679 | $ 6,977,776 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charge | $ 4,823,678,000 | $ 629,000 | |
Proved Oil And Gas Properties | |||
Property, Plant and Equipment [Line Items] | |||
Estimate of future asset retirement costs | 42,100,000 | $ 42,300,000 | |
Impairment loss | 4,400,000,000 | 0 | |
Proved Oil And Gas Properties | Williston Basin | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss | 3,800,000,000 | ||
Proved Oil And Gas Properties | Delaware Basin | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss | 637,300,000 | ||
Other Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimate of future asset retirement costs | 1,400,000 | $ 1,400,000 | |
Unproved Oil And Gas Properties | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charge | 291,300,000 | 600,000 | |
Midstream Assets | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charge | $ 108,300,000 | $ 0 |
Divestitures and Assets Held _3
Divestitures and Assets Held for Sale - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of properties | $ 11,813 | $ 0 | |
Held for Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment loss | 1,400 | ||
Divestiture of Certain Gas Properties in South Nesson Area of Williston Basin | Divestitures | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of properties | $ 10,400 | ||
Net gain on disposition of oil and gas property | 11,500 | ||
Well Services Exit | Held for Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment loss | $ 14,500 |
Divestitures and Assets Held _4
Divestitures and Assets Held for Sale - Balance Sheet Data Related to Assets and Liabilities Held for Sale (Details) - Held for Sale - 2019 Divestitures $ in Thousands | Mar. 31, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Inventory | $ 2,434 |
Other property and equipment | 15,786 |
Less: Accumulated depreciation and impairment | (13,111) |
Total assets held for sale | $ 5,109 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,777,932 | $ 2,711,573 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total principal of senior unsecured notes and revolving line of credit | 1,825,757 | 1,982,568 |
Less: unamortized deferred financing costs on senior unsecured notes | $ (13,475) | (15,618) |
Senior Notes | 6.50% senior unsecured notes due November 1, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 6.50% | |
Total principal of senior unsecured notes and revolving line of credit | $ 43,601 | 71,835 |
Senior Notes | 6.875% senior unsecured notes due March 15, 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 6.875% | |
Total principal of senior unsecured notes and revolving line of credit | $ 834,466 | 890,980 |
Senior Notes | 6.875% senior unsecured notes due January 15, 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 6.875% | |
Total principal of senior unsecured notes and revolving line of credit | $ 307,728 | 351,953 |
Senior Notes | 6.25% senior unsecured notes due May 1, 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 6.25% | |
Total principal of senior unsecured notes and revolving line of credit | $ 395,122 | 400,000 |
Senior Notes | 2.625% senior unsecured convertible notes due September 15, 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 2.625% | |
Total principal of senior unsecured notes and revolving line of credit | $ 244,840 | 267,800 |
Less: unamortized debt discount on senior unsecured convertible notes | (43,850) | (50,877) |
Total long-term debt | 244,800 | |
Revolving Credit Facility | Credit Facility | Oasis Credit Facility | ||
Debt Instrument [Line Items] | ||
Total principal of senior unsecured notes and revolving line of credit | 522,000 | 337,000 |
Total long-term debt | 522,000 | |
Revolving Credit Facility | Credit Facility | OMP Credit Facility | ||
Debt Instrument [Line Items] | ||
Total principal of senior unsecured notes and revolving line of credit | 487,500 | $ 458,500 |
Total long-term debt | $ 487,500 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 3 Months Ended | |||||||
Mar. 31, 2020USD ($)day$ / shares | Mar. 31, 2019USD ($) | Jul. 01, 2020USD ($) | Jun. 01, 2020USD ($) | Apr. 24, 2020USD ($) | Apr. 23, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 15, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||||
Total long-term debt | $ 2,777,932,000 | $ 2,711,573,000 | ||||||
Gain on extinguishment of debt | 83,887,000 | $ 0 | ||||||
Unsecured Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, fair value | 331,500,000 | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of debt repurchased | 133,900,000 | |||||||
Cost of debt repurchased | 52,900,000 | |||||||
Gain on extinguishment of debt | 80,200,000 | |||||||
Write-off of deferred finance cost | 800,000 | |||||||
Senior Notes | 2022 and 2023 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term debt | 1,142,200,000 | |||||||
Senior Notes | 2.625% senior unsecured convertible notes due September 15, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term debt | $ 244,800,000 | |||||||
Stated interest rate (as percent) | 2.625% | |||||||
Aggregate principal amount of debt repurchased | $ 23,000,000 | |||||||
Cost of debt repurchased | 15,200,000 | |||||||
Gain on extinguishment of debt | 3,700,000 | |||||||
Write-off of deferred finance cost | 200,000 | |||||||
Amortization of debt discount | 4,200,000 | |||||||
Equity component of convertible debt | 300,000 | |||||||
Debt issued | $ 244,800,000 | |||||||
Debt conversion rate per $1000 principal (in shares per $1000) | 0.076365 | |||||||
Debt conversion price (in dollars per share) | $ / shares | $ 13.10 | |||||||
Senior Notes | 2.625% senior unsecured convertible notes due September 15, 2023 | Debt Conversion Scenario 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | day | 20 | |||||||
Number of consecutive trading days | day | 30 | |||||||
Stock price relative to conversion price (percent) | 130.00% | |||||||
Senior Notes | 2.625% senior unsecured convertible notes due September 15, 2023 | Debt Conversion Scenario 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | day | 5 | |||||||
Number of consecutive trading days | day | 5 | |||||||
Stock price relative to product of sale price and conversion rate (percent) | 98.00% | |||||||
Senior Notes | 6.50% senior unsecured notes due November 1, 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as percent) | 6.50% | |||||||
Aggregate principal amount of debt repurchased | $ 28,200,000 | |||||||
Senior Notes | 6.875% senior unsecured notes due March 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as percent) | 6.875% | |||||||
Aggregate principal amount of debt repurchased | $ 56,500,000 | |||||||
Senior Notes | 6.875% senior unsecured notes due January 15, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as percent) | 6.875% | |||||||
Aggregate principal amount of debt repurchased | $ 44,200,000 | |||||||
Senior Notes | 6.25% senior unsecured notes due May 1, 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as percent) | 6.25% | |||||||
Aggregate principal amount of debt repurchased | $ 4,900,000 | |||||||
Senior Notes | Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured debt | $ 1,580,900,000 | |||||||
Senior Notes | Notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as percent) | 6.25% | |||||||
Senior Notes | Notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as percent) | 6.875% | |||||||
Revolving Credit Facility | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility amount | $ 3,000,000,000 | |||||||
Line of credit facility, remaining borrowing capacity | 559,100,000 | |||||||
Revolving Credit Facility | Credit Facility | Expected | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing base | $ 600,000,000 | $ 612,500,000 | ||||||
Revolving Credit Facility | Credit Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing base | $ 625,000,000 | $ 1,300,000,000 | ||||||
Line of credit facility, current borrowing capacity | 625,000,000 | $ 1,100,000,000 | ||||||
Revolving Credit Facility | Credit Facility | Oasis Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term debt | 522,000,000 | |||||||
Line of credit facility, current borrowing capacity | $ 1,100,000,000 | |||||||
Weighted average interest rate (as percent) | 2.70% | |||||||
Letters of credit outstanding | $ 18,900,000 | |||||||
Interest charges | 29,300,000 | |||||||
Revolving Credit Facility | Credit Facility | Oasis Credit Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Cash on hand threshold for prepayments | $ 60,000,000 | |||||||
Company's maximum ratio -Total Debt to EBITDA | 4 | |||||||
Revolving Credit Facility | Credit Facility | OMP Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term debt | 487,500,000 | |||||||
Credit facility borrowing base | $ 575,000,000 | |||||||
Weighted average interest rate (as percent) | 2.90% | |||||||
Letters of credit outstanding | $ 1,700,000 | |||||||
Interest charges | 25,900,000 | |||||||
Line of credit facility, remaining borrowing capacity | $ 85,800,000 | |||||||
Revolving Credit Facility | Credit Facility | OMP Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.375% | |||||||
Revolving Credit Facility | Credit Facility | OMP Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.50% | |||||||
Revolving Credit Facility | Swingline Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing base | $ 50,000,000 | |||||||
Revolving Credit Facility | Swingline Loan | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing base | $ 100,000,000 |
Long-Term Debt - Effects of Fou
Long-Term Debt - Effects of Fourth Amendment (Details) - Subsequent Event | Apr. 24, 2020 |
Less than 25% | |
Debt Instrument [Line Items] | |
Commitment Fee Rates (percent) | 0.50% |
Greater than or equal to 25% but less than 50% | |
Debt Instrument [Line Items] | |
Commitment Fee Rates (percent) | 0.50% |
Greater than or equal to 50% but less than 75% | |
Debt Instrument [Line Items] | |
Commitment Fee Rates (percent) | 0.50% |
Greater than or equal to 75% but less than 90% | |
Debt Instrument [Line Items] | |
Commitment Fee Rates (percent) | 0.50% |
Greater than or equal to 90% | |
Debt Instrument [Line Items] | |
Commitment Fee Rates (percent) | 0.50% |
Minimum | Greater than or equal to 25% but less than 50% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 25.00% |
Minimum | Greater than or equal to 50% but less than 75% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 50.00% |
Minimum | Greater than or equal to 75% but less than 90% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 75.00% |
Minimum | Greater than or equal to 90% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 90.00% |
Maximum | Less than 25% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 25.00% |
Maximum | Greater than or equal to 25% but less than 50% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 50.00% |
Maximum | Greater than or equal to 50% but less than 75% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 75.00% |
Maximum | Greater than or equal to 75% but less than 90% | |
Debt Instrument [Line Items] | |
Commitment utilization (percent) | 90.00% |
ABR Loans or Swingline Loans | Less than 25% | ABR or Swingline | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 0.75% |
ABR Loans or Swingline Loans | Greater than or equal to 25% but less than 50% | ABR or Swingline | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 1.00% |
ABR Loans or Swingline Loans | Greater than or equal to 50% but less than 75% | ABR or Swingline | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 1.25% |
ABR Loans or Swingline Loans | Greater than or equal to 75% but less than 90% | ABR or Swingline | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 1.50% |
ABR Loans or Swingline Loans | Greater than or equal to 90% | ABR or Swingline | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 1.75% |
Swingline Loan | Less than 25% | Eurodollar | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 2.25% |
Swingline Loan | Greater than or equal to 25% but less than 50% | Eurodollar | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 2.50% |
Swingline Loan | Greater than or equal to 50% but less than 75% | Eurodollar | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 2.75% |
Swingline Loan | Greater than or equal to 75% but less than 90% | Eurodollar | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 3.00% |
Swingline Loan | Greater than or equal to 90% | Eurodollar | |
Debt Instrument [Line Items] | |
Spread on variable rate (percent) | 3.25% |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
December 31, 2019 | $ 56,784 |
Liabilities incurred during period | 333 |
Liabilities settled during period | (194) |
Accretion expense during period | 765 |
March 31, 2020 | $ 57,688 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) |
Asset Retirement Obligation Disclosure [Abstract] | |
Total asset retirement obligations, current portion | $ 0.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate (as percent) | 5.60% | 3.30% | |
Pre-tax income (loss) | $ (4,589,013) | $ (111,681) | |
Valuation allowance | $ 830,400 | $ 2,900 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)day$ / sharesshares | Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expenses | $ | $ 6,807 | $ 9,013 |
Right to received shares of common stock (in shares) | 1 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Stock granted (in shares) | 3,505,629 | |
Granted, weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 3.36 | |
Equity-based compensation expenses | $ | $ 4,400 | 6,400 |
Performance Share Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock granted (in shares) | 2,429,747 | |
Granted, weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 2.77 | |
Equity-based compensation expenses | $ | $ 2,300 | 2,500 |
Right to received shares of common stock (in shares) | 1 | |
Number of trading days | day | 30 | |
Performance Share Unit Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PSU granted percentage of earnings (as a percent) | 0.00% | |
Performance Share Unit Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PSU granted percentage of earnings (as a percent) | 240.00% | |
Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Stock granted (in shares) | 241,720 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Stock granted (in shares) | 16,170 | |
Granted, weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 16.69 | |
Oasis Midstream Partners, LP | Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 16.69 | |
Equity-based compensation expenses | $ | $ 600 | 700 |
OMP General Partner LLC | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expenses | $ | $ 100 | $ 100 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Assumptions (Details) - Performance Share Units | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Oasis volatility (as percent) | 68.56% |
Oasis initial value (usd per share) | $ 3.19 |
Oasis stock price on date of grant (usd per share) | $ 2.77 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Forecast period (years) | 2 years |
Risk-free interest rate (as percent) | 1.53% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Forecast period (years) | 4 years |
Risk-free interest rate (as percent) | 1.55% |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Weighted-Average Number of Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Basic and diluted weighted average common shares outstanding (shares) | 316,828 | 314,464 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Common Shares Excluded from Diluted Earnings (Loss) per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted stock awards and PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock-based compensation awards (in shares) | 11,166 | 9,800 |
Business Segment Information -
Business Segment Information - Additional Information (Details) - Segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Number of current operating units | 2 | 3 |
Business Segment Information _2
Business Segment Information - Summarized Financial Information of Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 387,798 | $ 575,732 | |
Operating loss | (4,862,528) | 50,444 | |
Other income (expense), net | 273,515 | (162,125) | |
Loss before income taxes | (4,589,013) | (111,681) | |
Property, plant and equipment, net | 2,148,679 | $ 6,977,776 | |
Total assets | 2,869,835 | 7,499,253 | |
Exploration and Production Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 331,387 | 527,711 | |
Midstream services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 124,955 | 106,582 | |
Operating Segments | Exploration and Production Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 331,387 | 527,711 | |
Operating loss | (4,817,255) | 2,338 | |
Other income (expense), net | 303,998 | (158,377) | |
Loss before income taxes | (4,513,257) | (156,039) | |
Property, plant and equipment, net | 1,205,700 | 5,939,389 | |
Total assets | 1,722,331 | 6,502,214 | |
Operating Segments | Midstream services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 56,411 | 48,021 | |
Operating loss | (42,226) | 49,806 | |
Other income (expense), net | (30,483) | (3,748) | |
Loss before income taxes | (72,709) | 46,058 | |
Property, plant and equipment, net | 985,791 | 1,078,903 | |
Total assets | 2,080,359 | 1,101,401 | |
Inter-segment | Exploration and Production Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Inter-segment | Midstream services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 68,544 | 58,561 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (68,544) | (58,561) | |
Operating loss | (3,047) | (1,700) | |
Other income (expense), net | 0 | 0 | |
Loss before income taxes | (3,047) | $ (1,700) | |
Property, plant and equipment, net | (42,812) | (40,516) | |
Total assets | $ (932,855) | $ (104,362) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) bbl in Millions, Bcf in Millions | Nov. 01, 2019USD ($) | Mar. 23, 2017USD ($) | Mar. 31, 2020USD ($)bblBcf |
Commitments and Contingencies [Line Items] | |||
Required delivery time-frame under volume commitments time frame agreements | 25 years | ||
Estimable future commitments under agreements | $ 597,200,000 | ||
Loss contingency accrual | 20,000,000 | ||
Mirada Litigation | Pending | |||
Commitments and Contingencies [Line Items] | |||
Damages sought (in excess of) | $ 200,000,000 | $ 100,000,000 | |
Revolving Credit Facility | |||
Commitments and Contingencies [Line Items] | |||
Off-balance sheet commitments | 20,600,000 | ||
Surety Bonds | |||
Commitments and Contingencies [Line Items] | |||
Off-balance sheet commitments | $ 66,700,000 | ||
Crude Oil | |||
Commitments and Contingencies [Line Items] | |||
Minimum quantity to be delivered or transported (in MMBbl) | bbl | 57.1 | ||
Natural gas liquids | |||
Commitments and Contingencies [Line Items] | |||
Minimum quantity to be delivered or transported (in MMBbl) | bbl | 33 | ||
Natural Gas | |||
Commitments and Contingencies [Line Items] | |||
Minimum quantity to be delivered or transported (in MMBbl) | Bcf | 798.8 | ||
Water | |||
Commitments and Contingencies [Line Items] | |||
Minimum quantity to be delivered or transported (in MMBbl) | bbl | 12.5 |